Advanced Micro Devices Inc (AMD)

[HailMary]

Some specific portion of that shortfall must effectively come straight out of AMD's pocket. It is what, 40%? 60%?

No, that is not how it works. SPSN gets all the cash from the IPO. A portion of AMD's equity (assets-liabilities) now go to SPSN and they account for them. AMD looses some equity here, but they gain equity by getting shares of SPSN. And the equity value of AMD shares of SPSN are based on the market price, which I bet is going to be higher than $12 by year end. Also SPSN owes AMD some money for loans, and that gets paid back.

My guess is AMD just gained a good amount in equity (but lost overall in value of assets). Yes that equity could be higher, but the IPO price is not important. The market price is.