Altera Buyout

xandman · Jun 1, 2015

I read somewhere that INTC wants to get into the foundry business to compete with TSM and the like. Sounds even crazier. Techzines are worse than business rags.

xandman · Jun 1, 2015

newwurldmn said:
It's the cost of carry for 10 months + a (small) risk premium of the deal not going through.

That's very precise. How do you calculate the cost of carry?

Cippo · Jun 29, 2015

xandman said:
That's very precise. How do you calculate the cost of carry?

Altera 51,11$ June 30, 2015 .... why so low?
5.6% gain in 10month with no risk!

xandman · Jun 29, 2015

Not bad, I guess. I decided to redeploy my capital.

Butterball · Jun 30, 2015

Im long ALTR but to say there's no risk is naive. I've owned many dozens of merger arb plays and every once in a while you get mauled for 20-30% when a deal implodes.

Cippo · Jun 30, 2015

Butterball said:
Im long ALTR but to say there's no risk is naive. I've owned many dozens of merger arb plays and every once in a while you get mauled for 20-30% when a deal implodes.

yes I know, I unfortunately have experienced a merging failure .... -13% in one day!

nitro · Jun 30, 2015

hajimow said:
If INTC intention was to use Altera's programmable parts in its chips, it could easily be done by licensing in much lower price. So why INTC is buying ALTR? Well Lots of cash and no idea makes you do crazy things that does not make sense.

It is a very logical buy. I am really hoping this comes true:

Intel unveils new Xeon chip with integrated FPGA, touts 20x performance boost

http://www.extremetech.com/extreme/...h-integrated-fpga-touts-20x-performance-boost

hajimow · Jun 30, 2015

nitro said:
It is a very logical buy. I am really hoping this comes true:

Intel unveils new Xeon chip with integrated FPGA, touts 20x performance boost

http://www.extremetech.com/extreme/...h-integrated-fpga-touts-20x-performance-boost

I have a PhD in EE and work with FPGAs and I know the need for a combination of a DSP and a programmable device. My point was that there was no need to buy the company. They could easily pay 1B and license it. When you need milk, you don't buy a grocery store or a farm.

nitro · Jun 30, 2015

hajimow said:
I have a PhD in EE and work with FPGAs and I know the need for a combination of a DSP and a programmable device. My point was that there was no need to buy the company. They could easily pay 1B and license it. When you need milk, you don't buy a grocery store or a farm.

Well, INTC and ALTR have had such a close relationship for so many years that I think they finally decided that it would make sense to tie the knot.

Could it have also worked without the marriage? Of course. I suspect that INTC is trying to evolve into more of the embedded market and therefore buying/merging with ALTR makes perfect sense going forward as well.

hajimow · Jun 30, 2015

nitro said:
Well, INTC and ALTR have had such a close relationship for so many years that I think they finally decided that it would make sense to tie the knot.

Could it have also worked without the marriage? Of course. I suspect that INTC is trying to evolve into more of the embedded market and therefore buying/merging with ALTR makes perfect sense going forward as well.

Lets wait and see what happens. I am expecting a good size layoff from both sides after merge is done.