News AMD Reportedly In Advanced Talks To Buy Xilinx for Roughly $30 Billion

AMDs total assets are around 6.6bil if they do that it's goodbye for AMD, so it's a good thing it's basically impossible for them, they would need to make like 25bil debt, they wouldn't survive that.
And that's just to acquire them,xilinx is in pretty bad shape themselves with about 3bil in liabilities against them.
https://www.macrotrends.net/stocks/charts/AMD/amd/total-assets

Edit:
Also xilinx total assets are about 5.4 bil so paying 30 bil for them is utopian to not say completely stupid.
https://www.macrotrends.net/stocks/charts/XLNX/xilinx/total-assets
 
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gdmaclew

Distinguished
Very bad idea. Just when AMD shows signs of surpassing Intel on the all-round performance scale, they are considering taking on more debt? What will this do to their R&D budget?
The landscape is littered with the remains of companies that went "a bridge too far".
Consolidate your position first AMD and then maybe look to expand.

Note: Broden its attack? Broden?
 

logainofhades

Titan
Moderator
Very bad idea. Just when AMD shows signs of surpassing Intel on the all-round performance scale, they are considering taking on more debt? What will this do to their R&D budget?
The landscape is littered with the remains of companies that went "a bridge too far".
Consolidate your position first AMD and then maybe look to expand.

Note: Broden its attack? Broden?
You missed this apparently.

The WSJ reports that AMD will likely leverage its high stock valuation, it now has a $100 billion market cap, as currency to purchase Xilinx.
 
You missed this apparently.
The WSJ reports that AMD will likely leverage its high stock valuation, it now has a $100 billion market cap, as currency to purchase Xilinx.
Yeah this is maybe even worse than making actual debt...
How much % of AMD stock are still with AMD? How much of that would be 30bil? Would AMD keep their share majority?

And on the flip side from xilinx side, if they try and sell all 30bil of shares right away that's 30% of AMDs whole value in shares being dumped into the market all at once which could make share price plummet like crazy, it could even affect the stock market as a whole.

And if they make a clause to keep the stock for a set amount of time it becomes a super huge gamble for xilinx,AMD shares were $2 just a couple of years ago so it's not like it's a stable stock or anything, if it drops (for example because rocket lake will have 20% more compute units and whatever more cache and higher clocks) xilinx will be losing a big chunk of money.
 

jimmysmitty

Champion
Moderator
idk if they should be blowing 30B when they finally are getting a stash of $.
Thats actually exactaly what they should do. Consumer CPUs and GPUs along with entry level server/HPC is not nearly as profitable as HPC specific products. Intel makes vastly better margins with their FPGAs than they do with their consumer CPUs.

If they do well it would be a source of cash to help them continue to grow even if their consumer products are not as competitive as they currently are.
 
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InvalidError

Titan
Moderator
Very bad idea. Just when AMD shows signs of surpassing Intel on the all-round performance scale, they are considering taking on more debt? What will this do to their R&D budget?
Intel bought Altera.
Nvidia bought Mellanox.

What do you think would happen if AMD decided to pass on Xilinx which is one of the few remaining companies out there with a portfolio of ultra-high-speed interconnect stuff? AMD would end up falling behind in datacenter, AI, supercomputers and a bunch of other far more lucrative markets than PC and dual-socket servers.

AMD buying Xilinx is practically necessary if it does not want to repeat 2006.
 

gg83

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AMDs total assets are around 6.6bil if they do that it's goodbye for AMD, so it's a good thing it's basically impossible for them, they would need to make like 25bil debt, they wouldn't survive that.
And that's just to acquire them,xilinx is in pretty bad shape themselves with about 3bil in liabilities against them.
https://www.macrotrends.net/stocks/charts/AMD/amd/total-assets

Edit:
Also xilinx total assets are about 5.4 bil so paying 30 bil for them is utopian to not say completely stupid.
https://www.macrotrends.net/stocks/charts/XLNX/xilinx/total-assets
Why would AMD do this then? It seems weird to me.
 
Intel bought Altera.
Nvidia bought Mellanox.

What do you think would happen if AMD decided to pass on Xilinx which is one of the few remaining companies out there with a portfolio of ultra-high-speed interconnect stuff? AMD would end up falling behind in datacenter, AI, supercomputers and a bunch of other far more lucrative markets than PC and dual-socket servers.

AMD buying Xilinx is practically necessary if it does not want to repeat 2006.
Huh?! In 2006 AMD payed more than they owned to buy ATI, which resulted in AMD being in the slums until..still,they are just about to pay off the debts from back then,or at least they were on the last quarterly report they might have crossed the line by now.

AMD showed incredible incompetence in integrating Ati and their technology into their own, they took longer than intel did starting from zero and they still can't put an iGPU into all of their CPUs.

They might be much better now in integrating stuff but it's still a huge risk for AMD especially since they are already behind.

Why on Earth would AMD want to repeat 2006?
 

InvalidError

Titan
Moderator
AMD showed incredible incompetence in integrating Ati and their technology into their own, they took longer than intel did starting from zero and they still can't put an iGPU into all of their CPUs.
AMD isn't putting an IGP into all of its CPUs because it cannot afford wasting wafer space on IGPs most people buying CPUs above entry-level won't be using.

And my 2006 comment was with regards to AMD getting blown out of the water by Core 2, not the ATI purchase, didn't remember that both of those things happened in the same year. In any case, with more of the big money in computers moving to datacenters, AI and supercomputers, AMD would risk getting left out if it did not have its own datacenter-AI-HPC infrastructure. Imagine AMD avoiding bankruptcy only to almost completely lose out on the fastest-growing highest-margins computing market segments and ultimately fail all over again.
 

jimmysmitty

Champion
Moderator
AMD isn't putting an IGP into all of its CPUs because it cannot afford wasting wafer space on IGPs most people buying CPUs above entry-level won't be using.

And my 2006 comment was with regards to AMD getting blown out of the water by Core 2, not the ATI purchase, didn't remember that both of those things happened in the same year. In any case, with more of the big money in computers moving to datacenters, AI and supercomputers, AMD would risk getting left out if it did not have its own datacenter-AI-HPC infrastructure. Imagine AMD avoiding bankruptcy only to almost completely lose out on the fastest-growing highest-margins computing market segments and ultimately fail all over again.
Yea this is a good purcahse although they will be behind a bit of the others.

2006 was a bad year since they had dropped a FAB (to one) and had Core 2 on top of their ATI purchase which didn't do them many favors at the beginning.

But this is a smart choice. Consumer and server products are not as high margin as HPC, AI and datacenter products. Having higher margin products to keep cash flow coming in will help avoid their near disastrous few years with K10 and Bulldozer.
 

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