Amd acquisition rumors not so unfounded...

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JDG1980

Golden Member
Jul 18, 2013
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This was my thought as well. If the cross-license agreement terminates, then AMD (or whoever buys it) can no longer make x86 CPUs - but then wouldn't Intel also be unable to use the AMD64 extensions? Somehow I doubt Intel wants to go back to 32-bit CPUs, or to give Itanic another try. And that's assuming the cross-license is only CPU stuff; it wouldn't surprise me if they also needed to license some graphics IP from AMD for their integrated GPUs.

Add that to the antitrust concerns (in Europe as well as the US) and I think it's almost certain that whoever buys AMD is going to get the ability to make x86 CPUs one way or another.
 
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mrmt

Diamond Member
Aug 18, 2012
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JDG1980 said:
This was my thought as well. If the cross-license agreement terminates, then AMD (or whoever buys it) can no longer make x86 CPUs - but then wouldn't Intel also be unable to use the AMD64 extensions? Somehow I doubt Intel wants to go back to 32-bit CPUs, or to give Itanic another try. And that's assuming the cross-license is only CPU stuff; it wouldn't surprise me if they also needed to license some graphics IP from AMD for their integrated GPUs.
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VIA is a far more suitable target for acquisition if the objective is to get a x86 license, but yet we don't see many companies lining up for it. It is smaller, leaner, and has a better capital structure. Why would someone bother with AMD?
 
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erunion

Senior member
Jan 20, 2013
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monstercameron said:
So amd can be bought out and transfer the x86 license. SAMSUNG, MEDIATEK (cuz moar coarz) PLEASE QUICKLY BUY AMD!!!
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The article does not seem to say that.
The CFO says licensing wouldn't effect a merger or acquisition, not that the clause doesn't exist.
 
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positivedoppler

Golden Member
Apr 30, 2012
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You can put Intel out of business over night by buying AMD.
http://www.kitguru.net/components/c...nge-of-control-terminates-agreement-for-both/

Intel will have to negotiate with whoever buys AMD. I think under their settlement both companies have to negotiate in good faith and is monitor by the US Government. If Intel plays hard ball, they can lose their 64bit x86 license and be royally screwed. It's actually a good way for Qualcomm to punch Intel in the gutt.
 
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Headfoot

Diamond Member
Feb 28, 2008
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I don't know why people keep acting like whats on paper is immutable. They'd call them up and go hey, so we're going to merge with X company so we'll need to amend the cross license agreement -- then Intel goes, yup okay because its still a deal they want.

Intel's actively using AMD patented tech, and vice versa. Its not in eithers interest to reneg on a cross license deal. It's a complete non issue
 
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erunion

Senior member
Jan 20, 2013
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positivedoppler said:
You can put Intel out of business over night by buying AMD.
http://www.kitguru.net/components/c...nge-of-control-terminates-agreement-for-both/

Intel will have to negotiate with whoever buys AMD. I think under their settlement both companies have to negotiate in good faith and is monitor by the US Government. If Intel plays hard ball, they can lose their 64bit x86 license and be royally screwed. It's actually a good way for Qualcomm to punch Intel in the gutt.
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Nope. IIRC, if one party (AMD or Intel) goes bunkrupt the other party gets to keep using the other's IP indefinitely. Survivor keeps all.
 
bryanW1995

bryanW1995

Lifer
May 22, 2007
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Most likely company to buy AMD is Intel. They hardly compete against each other any more, and nobody else wants to try going toe to toe vs Intel in x86.
 
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MrTeal

Diamond Member
Dec 7, 2003
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erunion said:
Nope. IIRC, if one party (AMD or Intel) goes bunkrupt the other party gets to keep using the other's IP indefinitely. Survivor keeps all.
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That's what the article says as well.

Since Intel does use intellectual property of AMD inside its chips, it needs an agreement with AMD. However, it should be noted that if the cross-license between AMD and Intel is terminated because a party gets acquired by a third company, licenses granted to another party will survive unless that other party gets acquired too (i.e., if AMD is taken over, Intel sustains rights to AMD’s IP), in accordance with the term 5.2d of the agreement. The same happens if one company gets bankrupt.
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ShintaiDK

ShintaiDK

Lifer
Apr 22, 2012
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The article is terrible and wrong. Like it was any surprise.

But AMD is trying to sell itself before its run completely into the ground.
 
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erunion

Senior member
Jan 20, 2013
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ShintaiDK said:
.

But AMD is trying to sell itself before its run completely into the ground.
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That they are talking about this definitely suggests that they are interested in merger.


I'd be interested to find out exactly why Kumar thinks licensing shouldn't effect a merger. Hopeful for government intervention?
 
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Abwx

Lifer
Apr 2, 2011
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erunion said:
Nope. IIRC, if one party (AMD or Intel) goes bunkrupt the other party gets to keep using the other's IP indefinitely. Survivor keeps all.
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That s not what is said explicitely, that s just a protection clause so if one party goes bankrupt the term of the licence will remain actual untill renegociation with an eventual buyer, this way the survivying firm can continue its activity without being impacted by the other one s bankruptcy, but in no way a bankruptcy would mean that the survivying firm would get the bankrupted firm IP for free, that s total non sense...

Keep in mind that a bankrupted firm IP is property of the debts owners, hence this juridical provision.
 
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positivedoppler

Golden Member
Apr 30, 2012
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erunion said:
Nope. IIRC, if one party (AMD or Intel) goes bunkrupt the other party gets to keep using the other's IP indefinitely. Survivor keeps all.
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Who said anything about bankruptcy? Company that buys AMD can put the world's entire x86 production on hold if Intel can't negotiate in good faith.
 
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erunion

Senior member
Jan 20, 2013
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positivedoppler said:
Who said anything about bankruptcy? Company that buys AMD can put the world's entire x86 production on hold if Intel can't negotiate in good faith.
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nope. AMD can't unilaterally withdraw intel's access to its IP, and especially not after an acquisition.
 
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positivedoppler

Golden Member
Apr 30, 2012
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erunion said:
nope. AMD can't unilaterally withdraw intel's access to its IP, and especially not after an acquisition.
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If a company buys or merge with AMD, Intel has to renegotiate the cross license agreement with the new entity and that process is monitored by the US government and both sides are required to negotiate in good faith. That subject has been beating to death here, but now it seems like in such an event Intel has far more to lose than AMD. If Intel can't get the negotiation done, then they can't make 64bit x86 chips.
 
Phynaz

Phynaz

Lifer
Mar 13, 2006
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Scenario I'm thinking of...

AMD declares bankruptcy.
Intel takes a $5B check to court and says "We want it all".
 
Phynaz

Phynaz

Lifer
Mar 13, 2006
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positivedoppler said:
Who said anything about bankruptcy? Company that buys AMD can put the world's entire x86 production on hold if Intel can't negotiate in good faith.
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Do you think the U.S. Government would allow there to be no X86 chips produced?

Think about it, the military spends billions a year on X86. "Nope, sorry sir, we can't build that missile because AMD won't let Intel manufacture CPUs".
 
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