AMD and Oil Money - Finally sustainability for the Princes…maybe

We’re all aware that AMD is planning to spin off into separate companies in order to reduce debt and increase their growth option. But where do these large sums of money magically come from?

Oil baby, Abu Dhabi oil!  In these trying economic times who else has the resources to fund a potentially dead and extremely expensive (operating, R&D, Fabs) company. Consider that in recent quarterly releases the most profitable companies were all oil based. Exxon, Shell, etc… To help put this in perspective, take a look at this:

“Exxon’s $40.6 billion profit in 2007 is roughly equal to receiving “$30 for every person in China and $132 for every U.S. resident.” Another way of looking at it is that Exxon made $77,245 per minute in 2007—that’s more money generated per minute than 70 percent of Americans earned all year, according to the Census Bureau.

Shell also had a record breaking year. Its $31.3 billion 2007 profit set a new company record, and was 23 percent higher than its $25.4 billion profit in 2006.”  — American Progress

So, what’s in it for the Abu Dhabi Government…long-term sustainability! You didn’t think that the princes of the middle east were just going to role over and die once the oil dried up did you?

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