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AMD To Acquire Xilinx In $35 Billion Stock Deal

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  • AMD To Acquire Xilinx In $35 Billion Stock Deal

    Phoronix: AMD To Acquire Xilinx in $35 Billion Stock Deal

    Following the rumors earlier this month that AMD was in talks to acquire Xilinx, a deal has been announced this morning...

    http://www.phoronix.com/scan.php?pag...quiring-Xilinx

  • #2
    Nice to see this deal come through. And the financial analysts were wrong again but these bean counters don't see the technical merits anyway that this brings. Expect FPGAs and Smart-NICs integrated onto the package or silicon in the future (not only data center offerings will profit from this, I can imagine that these could be integrated into all product segments, even consoles).

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    • #3
      Why bother making better graphics drivers when you can spend 35 billion acquiring another company?

      The overall story has been that since inception AMD's (well ATI's) graphics drivers were the crappiest (on windows) and on Linux only for the past 2 years were the drivers good enough yet still without any of the shitload of functionality available to windows users. Just sayin.

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      • #4
        Originally posted by cl333r View Post
        Why bother making better graphics drivers when you can spend 35 billion acquiring another company?

        The overall story has been that since inception AMD's (well ATI's) graphics drivers were the crappiest (on windows) and on Linux only for the past 2 years were the drivers good enough yet still without any of the shitload of functionality available to windows users. Just sayin.
        Buying other companies with stock is effectively free. You take the value of the bought company out of stocks to purchase, and then add it back in by being part of the new whole.

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        • #5
          I wonder if they've overpaid for it especially when you consider Nvidia bought ARM for $40bn and I hope digesting a new acquisition doesn't detract from their core business of making decent x86 products and making sure the marketplace can see those product, there's a distinct lack of their mobile solutions available right now. I'd like to buy a 4800u with a decent screen and 16gb of upgradeable RAM but rocking horse dung is more common place.
          Last edited by Slartifartblast; 27 October 2020, 08:24 AM.

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          • #6
            Originally posted by cl333r View Post
            Why bother making better graphics drivers when you can spend 35 billion acquiring another company?

            The overall story has been that since inception AMD's (well ATI's) graphics drivers were the crappiest (on windows) and on Linux only for the past 2 years were the drivers good enough yet still without any of the shitload of functionality available to windows users. Just sayin.
            How about mesa?
            Besides I think its a competition move against nvidia. Since they are aquiring arm.
            I personally awould like to see more investment into the Radeon Group (maybe not necessary if Big Navi is nice) then in something "I don't need at the moment". But it makes totally sense to me.

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            • #7
              Originally posted by Slartifartblast View Post
              I wonder if they've overpaid for it especially when you consider Nvidia bought ARM for $40bn.
              was this the recommendation by google shopping advisor ?

              *just joking good question but there are not so much arm like companies out there.

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              • #8
                Originally posted by Slartifartblast View Post
                I wonder if they've overpaid for it especially when you consider Nvidia bought ARM for $40bn and I hope digesting a new acquisition doesn't detract from their core business of making decent x86 products and making sure the marketplace can see those product, there's a distinct lack of their mobile solutions available right now. I'd like to buy a 4800u with a decent screen and 16gb of upgradeable RAM but rocking horse dung is more common place.
                You can't overpay if you aren't spending any actual money, as was already pointed out this is an all stock acquisition.

                Same thing with NVIDIA, they didn't buy ARM for 40 billion:

                https://www.anandtech.com/show/16080...for-40-billion

                The deal will see SoftBank receive $12 billion in cash, along with $21.5 billion in NVIDIA stock. That transaction will give SoftBank a relatively sizable ownership stake in NVIDIA, though according to the companies the total stake is expected to be under 10 percent. Finally, the remaining $6.5B valuation of the deal will come from a further $1.5B in equity that NVIDIA will be paying out to Arm employees, as well as a $5B “earn-out” payment to be paid if Arm meets certain financial targets.

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                • #9
                  Originally posted by Spooktra View Post

                  You can't overpay if you aren't spending any actual money, as was already pointed out this is an all stock acquisition.

                  Same thing with NVIDIA, they didn't buy ARM for 40 billion:

                  https://www.anandtech.com/show/16080...for-40-billion


                  Yes you can, it's called dilution. Think asset value per share, if Xilinix shares are overvalued then you have diluted your asset value per share in the combined entity, i.e. there are more shares for less worth therefore if they have overpayed existing shareholders take an asset haircut. Conversely proposals for such mergers is that it will generate synergistic savings and add future revenue growth and profitability to the business, so the question is have you bought a lemon and overpayed in asset value for it or will it drive profitability and growth thus increasing asset value ?
                  Last edited by Slartifartblast; 27 October 2020, 09:12 AM.

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                  • #10
                    Originally posted by Spooktra View Post

                    You can't overpay if you aren't spending any actual money, as was already pointed out this is an all stock acquisition.

                    Same thing with NVIDIA, they didn't buy ARM for 40 billion:

                    https://www.anandtech.com/show/16080...for-40-billion


                    You can most certainly overpay, because you generally have to pay a premium to the prevailing price. And stock isn't "free" as you people keep saying. You can sell it for cash. You can pledge it against loans. If its value goes down, you can do less of either of those things. And if you overpay, its value will go down.

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