Xilinx Inc. shares surged the most in nearly a year Friday following a report from the Wall Street Journal that the San Jose-based tech group could be bought by its chipmaking rival Advanced Micro Devices. .
The Journal said the pair were in advanced merger talks that could value Xilinx at more than $30 billion, a 16% premium to the group’s closing price on Wall Street last night. Xilinx’s data-center chips have become much more valuable since the coronavirus pandemic triggered a surge in work-from-home dynamics that have pressured companies around the world to improve their technology and storage capabilities.
AMD, meanwhile, has seen its share price rise nearly 90% so far this year, taking its market value past $100 billion, a move that gives the chipmaker substantial firepower — despite a small net cash position of just
Advanced Micro Devices (AMD) is in late-stage talks geared toward acquiring rival processor giant Xilinx, reports suggest.
According to the Wall Street Journal, the discussion, now in “advanced” stages, could be valued at over $30 billion.
The publication reported on Thursday that an agreement could be finalized as early as next week.
However, sources close to the matter added that discussions had previously “stalled” before restarting, and so there is no concrete guarantee that an acquisition bid would be accepted or go ahead at all.
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Over this year, AMD has launched a variety of new processors including the AMD Radeon Pro 5000 gaming processors, Ryzen & Ryzen Pro 4000G, and the enterprise Epyc 7Fx2 series.
The company has enjoyed a surge in share price over the past 12 months, rising from roughly $28 in October 2019 to
(Bloomberg) — Advanced Micro Devices Inc. is in advanced discussions to buy Xilinx Inc. in a takeover that could be valued at $30 billion, according to people familiar with the matter.
The deal could come together as early as next week, though things remain in flux, the people said, asking not to be identified discussing a private deal. The Wall Street Journal first reported on the negotiations.
A combination with Xilinx would give AMD Chief Executive Officer Lisa Su more of the pieces needed to break Intel Corp.’s stranglehold on the profitable market for data-center computer components. It would follow moves by rival Nvidia Corp., which bought Mellanox Technologies Ltd. and aims to use its pending acquisition of Arm Ltd. to grab more of that business.
Acquiring Xilinx, which makes programmable chips for wireless networks, would also help AMD expand into a new market just as telecommunications carriers