AMD Acquiring Pensando For $1.9B USD

[phoronix]

Phoronix: AMD Acquiring Pensando For $1.9B USD

It was just two months ago AMD completed its acquisition of Xilinx and now its newest data center play is entering into a definitive agreement to acquire Pensando...

https://www.phoronix.com/scan.php?page=news_item&px=AMD-Acquiring-Pensando

[uid313]

The word pensando in italian means "thinking".

[brucethemoose]

Given AMD's sky high valuation, with a market cap that recently passed Intel's, acquisitions like this are basically on a deep discount. If I were an AMD exec, I'd be buying companies left and right too, before the market corrects itself.

[furtadopires]

The word pensando in italian means "thinking".

In portuguese too

[Mario Junior]

I was here Pensando... 😜

[M@GOid]

I wonder for how long AMD was thinking on buying Pensando.

[cl333r]

In portuguese too

And in Spanish.

[Vistaus]

I wonder for how long AMD was pensando on buying Pensando.

FTFY.

[L_A_G]

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.

Because having lots of debt on the books may work just fine when you're doing good, but as soon as you hit a big bump in the road that excessive debt will kick you while you're down and limit how much cash you have to invest in new products. If you want to see what that looks when it goes wrong look at Disney or AT&T. They've had to tighten their belts real hard and in the case of AT&T sell and spin off divisions for pennies on the dollar compared to when they bought them.

[brucethemoose]

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.

Because having lots of debt on the books may work just fine when you're doing good, but as soon as you hit a big bump in the road that excessive debt will kick you while you're down and limit how much cash you have to invest in new products. If you want to see what that looks when it goes wrong look at Disney or AT&T. They've had to tighten their belts real hard and in the case of AT&T sell and spin off divisions for pennies on the dollar compared to when they bought them.

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.