There are rumors that AMD (AMD) will buy Xilinx (XLNX).

For AMD it makes sense for the following reasons:

  • AMD is primarily in FPGA business.
  • XLNX competes with Intel’s (INTC) FPGA business.
  • Long time subscribers may recall that INTC bought ALTR.  At that time ALTR was the prime competitor of XLNX.
  • AMD competes with INTC.
  • It is logical for AMD to want to buy XLNX.
  • AMD has low margins.
  • XLNX will likely be accretive.

Will XLNX Turn Down The Offer?

  • The stock has jumped in the premarket and is trading at $123.66 as of this writing.
  • The reported offer may be around $125.