Silent_Buddha
Legend
The important things as I mentioned before from that is that Mubadala are freeing up share ownership so that they can exercise the warrant in part or in full at some point in the future.
Seeking Alpha speculates that because of this Mubadala could potentially exercise 50 million share in a few months. However, if that was what Mubadala was planning to do, they had no need of selling 45 million shares to Goldman Sachs. Had they kept all the shares, they still would have been below 19.99% share ownership if they were to only buy 50 million shares.
All this, IMO, is just Mubadala
The other important thing is that last fact. The fact that Goldman Sach's views AMD stock as a worthwhile investment at this point in time. IE - they believe the value of AMD stock isn't going to stop growing.
Regards,
SB
Seeking Alpha speculates that because of this Mubadala could potentially exercise 50 million share in a few months. However, if that was what Mubadala was planning to do, they had no need of selling 45 million shares to Goldman Sachs. Had they kept all the shares, they still would have been below 19.99% share ownership if they were to only buy 50 million shares.
All this, IMO, is just Mubadala
- Freeing up shares so that if needed they can exercise the full 75 million shares when they find it advantageous to do so. Without doing this they would not have this flexibility.
- Take advantage of Goldman Sach's desire to purchase a large block of AMD stock.
The other important thing is that last fact. The fact that Goldman Sach's views AMD stock as a worthwhile investment at this point in time. IE - they believe the value of AMD stock isn't going to stop growing.
Regards,
SB