Amazon Now Holds AMD Stake Worth $84.4 Million After Lisa Su-Led Chipmaker Acquires ZT Systems (CORRECTED)
Amazon now holds 822,234 shares of AMD, valued at $84.4 million, following AMD's acquisition of ZT Systems. This stake was received as part of the acquisition, not through direct investment. AMD's SEC filing revealed that over 8.3 million shares are being distributed among former ZT Systems shareholders, including Inventec. AMD's recent financial report showed a 57% year-over-year growth in its data center segment, with first-quarter revenue of $7.44 billion.
Editor's Note: This article has been updated to clarify that Amazon and Inventec received AMD shares as part of AMD's acquisition of ZT Systems, not through a direct investment or strategic stake.
Recent regulatory filings with the Securities and Exchange Commission show that Amazon.com Inc. AMZN now holds 822,234 shares of Advanced Micro Devices Inc. AMD, valued at approximately $84.4 million.
What Happened: According to AMD's recent SEC filing, the company acquired ZT Group International, a server manufacturer, as part of its ongoing business expansion.
As part of the acquisition, AMD issued shares to former ZT Group shareholders-including Amazon, who held an equity stake in ZT Group prior to the acquisition.
"We are registering the offer and sale of the shares of common stock owned by the selling stockholders to satisfy registration rights we granted to them pursuant to a stock purchase agreement…We are not selling any shares of our common stock under this prospectus and will not receive any proceeds from the sale or other disposition of our common stock by the selling stockholders," AMD said in the regulatory filing.
Why It Matters: Aside from Amazon, major recipients of AMD shares in the ZT Systems acquisition include Inventec, set to receive 883,954 shares.
In total, over 8.3 million AMD shares are being distributed among ZT Systems' former shareholders as part of the $4.9 billion cash-and-stock deal.
AMD on Tuesday reported first-quarter revenue of $7.44 billion, with its data center segment growing 57% year-over-year to $3.7 billion.
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