Another Big Writeoff for AMD...

AMD is writing off another $880 million off its investment in ATI. You might recall that AMD paid $5.4 billion for ATI a little less than two years ago. Add this $880 million to earlier writeoffs, and AMD has written off $2.5 billion of that $5.4 billion. What is this like? This is like someone buying a $500,000 house two years ago with your life savings of $200,000 and a mortgage covering the rest. Two years later, you find out that the house is now worth only $270,000, so you now owe more on the mortgage than the house is worth.