As the agreement closes in 2021 expectedly, AMD investors will possess 74% of the combined company, leaving Xilinx shareholders with 26%.Advanced Micro Devices Inc (NASDAQ: AMD), widely known as AMD, is purchasing Xilinx Inc (NASDAQ: XLNX) for billion in stock. As it stands, the deal should close at the end of 2021. Being a notable firm in the industry, Xilinx will strengthen AMD against its rival, Intel, in the business of data center.AMD to Buy Xilinx for Billion in StockOn the 27th of October, AMD announced that the new deal with Xilinx would help both companies dominate the data center market. At the close of the partnership, Xilinx will receive AMD’s common stock of 1.7234 shares for each share of Xilinx common stock.When the deal closes in 2021, shareholders at AMD will own
Topics:
<title> considers the following as important:
This could be interesting, too:
Bitcoin Schweiz News writes Das ist das Crypto Builders Gathering in St. Moritz: Der Treffpunkt für die Zukunft der Krypto-Technologien
Wayne Jones writes Bad News for Crypto? Elizabeth Warren to Succeed Sherrod Brown on House Banking Committee
Martin Young writes Ethereum’s Modular Strategy: Short-Term Pain, Long-Term Gain, Says Research
Dimitar Dzhondzhorov writes 4 Reasons Why Bitcoin’s (BTC) Price Might See a Short-Term Correction
As the agreement closes in 2021 expectedly, AMD investors will possess 74% of the combined company, leaving Xilinx shareholders with 26%.
Advanced Micro Devices Inc (NASDAQ: AMD), widely known as AMD, is purchasing Xilinx Inc (NASDAQ: XLNX) for $35 billion in stock. As it stands, the deal should close at the end of 2021. Being a notable firm in the industry, Xilinx will strengthen AMD against its rival, Intel, in the business of data center.
AMD to Buy Xilinx for $35 Billion in Stock
On the 27th of October, AMD announced that the new deal with Xilinx would help both companies dominate the data center market. At the close of the partnership, Xilinx will receive AMD’s common stock of 1.7234 shares for each share of Xilinx common stock.
When the deal closes in 2021, shareholders at AMD will own about 74% of the joint venture. That is, Xilinx stockholders will retain the remaining 26%. Trading in the pre-market at $83.30, AMD gained 1.36% over its previous close. Notably, AMD has been increasing over the last twelve months. As the market opened, the stock is down 3.66%, trading at $79.22.
Also, Xilinx was up 17.69% to $134.38 at pre-market trading. Xilinx has increased over 24% over the past year and 17.16% in its year-to-date record. After the start of trading today, XLNX stock is at $125.02, adding over 9%.
The president of AMD, who is also the CEO, Dr. Lisa Su commented on the new collaboration:
“Our acquisition of Xilinx marks the next leg in our journey to establish AMD as the industry’s high performance computing leader and partner of choice for the largest and most important technology companies in the world.”
The CEO added that both companies’ stakeholders would benefit as the new partnership is poised to advanced growth and development. Referring to the 13,000 skilled engineers from both companies, Lisa Su believes that the partnership will grow to lead the data center market. She specifically said that “we [AMD and Xilinx] will create an industry leader with the vision, talent and scale to define the future of high performance computing.”
Victor Peng, Xilinx President and CEO, also expressed his excitement with the new partnership:
“We are excited to join the AMD family. Our shared cultures of innovation, excellence and collaboration make this an ideal combination. Together, we will lead the new era of high performance and adaptive computing.”
AMD Releases Q3 Earnings Results
As AMD and Xilinx come together, AMD’s Lisa Su will be the combined firm’s chief executive. Also, Xilinx’s president Peng will lead as the president of the alliance. Optimistic of a fruitful union, the companies hope to jointly raise $300 million cost savings within 18 months after the deal closes.
Earlier than the scheduled date, AMD has reported its earnings results for Q3 on the 27th of October. The company exceeded Wall Street predictions, reporting revenue and adjusted earnings of $2.80 billion and 41 cents per share. As stated in IBES data from Refinitiv, Wall Street had predicted $2.57 billion and 36 cents.
Furthermore, analysts have predicted $2.63 billion in Q4 revenue. However, AMD is expecting about a $3 billion revenue in the quarter.
