AMD Acquiring Pensando For $1.9B USD

[MadeUpName]

This is pretty smart it allows them to write off a bunch of their profits to avoid paying taxes and allows them to say we have no money left to write working Linux drivers.

[smitty3268]

I do hope they carry this out with a stock swap because with all of the acquisitions in the last few years I'm starting to get a little worried about what their balance sheet looks like.

Their balance sheets are so good right now they're spending billions of dollars buying back stock just to bump up the price for investors.

I don't think they have much debt to speak of, they've been paying everything off with stock.

[chris200x9]

I can't find the source now, but IIRC Xilinx was paid for with lots of stock, and I would be shocked if this wasn't as well.

Or maybe I'm confusing that with Nvidia's buying spree.

Yep, Xilinx was an all stock deal.

[L_A_G]

Their balance sheets are so good right now they're spending billions of dollars buying back stock just to bump up the price for investors.

I don't think they have much debt to speak of, they've been paying everything off with stock.

I wouldn't talk about stock buybacks as a good thing considering stock buybacks are basically people doing bad decisions to game a system meant to incentivize good decisions. Stock prices are meant to be an indication of a company's health, but spending huge amounts of money on reducing the number of shares outstanding provides no utility and instead only degrades their ability to invest and pay dividends.

But yeah, I just checked their debt-to-equity ratio and it's crazy good. The stock performance has been a big part in cutting it down to absurdly low levels, but they've really paid off old debt carried forward from the years pre-Zen when they were making some pretty big losses.

[NSLW]

Not shabby gratification for a one man after only 5 years of operation. I wonder how much he had invested in it.

[smitty3268]

I wouldn't talk about stock buybacks as a good thing considering stock buybacks are basically people doing bad decisions to game a system meant to incentivize good decisions.

I didn't. I wish they were investing it instead into making a better product. But I suppose they have so much money they don't really know what to do with it at the moment and maybe don't want to overinvest in case it starts drying up. That's my generous take, at least.

[L_A_G]

I didn't. I wish they were investing it instead into making a better product. But I suppose they have so much money they don't really know what to do with it at the moment and maybe don't want to overinvest in case it starts drying up. That's my generous take, at least.

Over-invest? We're talking about utilizing free cash flow here, not outside investment capital. It's basically a less direct form of embezzlement by executives and investors.

[julioschneider]

That's right, I also saw that news on inat tv pro modsuper