Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Searching for smart, safe news you can TRUST?

Support safe, smart, REAL journalism. Sign up for our Axios AM & PM newsletters and get smarter, faster.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Rebecca Zisser/Axios

Advanced Micro Devices (Nasdaq: AMD) agreed to buy rival U.S. chipmaker Xilinx (Nasdaq: XLNX) for $35 billion in stock.

Why it matters: AMD is expanding at the same time that rival Intel is divesting, using the nearly $40 billion in market cap it's gained so far in 2020. The deal also reflects rapid growth of the data center market, due to increased demand from cloud computing giants like Amazon, Google, and Microsoft.

Details: AMD is paying the equivalent of $143 per share, representing nearly a 25% premium to yesterday’s closing price for Xilinx stock.

  • The deal requires regulatory approval, including in China, with AMD estimating that it may not close until early 2022.
  • AMD would be required to pay Xilinx $1.5 billion if it terminates the transaction, while Xilinx would pay $1 billion were it to terminate.

The bottom line: "The deal will give [AMD CEO Lisa] Su more of the pieces she needs to break Intel’s stranglehold on the profitable market for data center computer components. Xilinx... makes field programmable gate arrays, or FPGAs. That kind of chip is unique because its function can be altered by software, even after it’s been installed in a piece of machinery." — Ian King, Bloomberg

Go deeper

Ina Fried, author of Login
Oct 26, 2020 - Economy & Business

Apple-Google search deal faces antitrust spotlight

Illustration: Aïda Amer/Axios

Google hands Apple billions of dollars annually to be the default search engine on the iPhone giant’s devices, an arrangement that’s coming under renewed scrutiny as part of the government's antitrust suit against Google.

Why it matters: Google is the go-to search engine on mobile devices due to this deal, together with other pacts with wireless carriers and Android device makers. Google says users would pick it anyway, but antitrust enforcers contend the deals give Google a huge advantage over its search rivals.

Dan Primack, author of Pro Rata
1 hour ago - Economy & Business

New deals in the COVID economy

Illustration: Sarah Grillo/Axios

COVID-19 is the macro horror of our lifetimes, and has destroyed or severely damaged countless businesses. But, like with most horribles, it also has created some opportunities.

Driving the news: Merck this morning announced an agreement to buy OncoImmune, a Maryland-based biotech that showed promising late-stage clinical results for a therapy that treats severe and critical coronavirus cases.

2 hours ago - Technology

Biden's openings for tech progress

Photo illustration: Eniola Odetunde/Axios. Photo: Win McNamee/Getty Images 

Item No. 1 on President-elect Joe Biden's day-one tech agenda, controlling the flood of misinformation online, offers no fast fixes — but other tech issues facing the new administration hold out opportunities for quick action and concrete progress.

What to watch: Closing the digital divide will be a high priority, as the pandemic has exposed how many Americans still lack reliable in-home internet connections and the devices needed to work and learn remotely.