Intel Pays AMD $1.25 Billion to settle Dispute

[13Gigatons]

http://www.nytimes.com/2009/11/13/technology/companies/13chip.html?_r=1&hp

Ending the computer industry’s most bitter legal war, the chip maker Intel agreed on Thursday to pay a rival, Advanced Micro Devices, $1.25 billion to settle antitrust and patent disputes.

Intel's Antitrust History

The settlement will resolve a private antitrust case pending in Federal District Court in Delaware and two in Japan. In addition, A.M.D. will withdraw all regulatory complaints worldwide. A.M.D. has been the driving force behind charges that Intel used marketing payments and other strong-arm tactics to pressure PC and server makers to use Intel microprocessors instead of those made by A.M.D.
As part of the deal, Intel agreed to abide by a set of undisclosed new business practices. The two companies will also cross-license each other’s patents for five years. An Intel spokesman said the companies will release more details of the agreement shortly.

 

[nublikescake]

Wow. I don't know if that's enough monetarily but at least it's some money AMD can pump into R&D.

 

[AdamK47]

Awesome awesome awesome!

 

[Inferno0032]

Wow. I don't know if that's enough monetarily but at least it's some money AMD can pump into R&D.

Exactly, hope they can get back on the horse and start competing, for the sake of all of us!

 

[IEC]

I wish I had bought AMD at $3 and at $4.

 

[Aharami]

I wish I had bought AMD at $3 and at $4.

wish I'd bought F at $1

 

[Demo24]

I wish I had bought AMD at $3 and at $4.

Was thinking the same thing. :\

 

[GlacierFreeze]

I wish I had bought AMD at $3 and at $4.

It was under $2 last December.... I thought about it then also... ughhhh

 

[SlowSpyder]

Didn't AMD have a few quarters that they lost over a billion dollars per quarter?

Yup. http://phx.corporate-ir.net/phoenix.zhtml?c=74093&p=quarterlyearnings

While this is good news for AMD, and Intel can probably easily afford that amount, AMD still has lost billions of dollars over the last few years.

 

[Alienwho]

I bought AMD when it was $4 right before it dropped down to $1. I was kicking myself for that one. At least it's back up now.

 

[ViviTheMage]

Oooo, this is good for AMD, maybe they can catch back up properly!

 

[techs]

Oooo, this is good for AMD, maybe they can catch back up properly!

1.25 billion? That's like a drop in the bucket. Especially considering the damage they did.
10.25 billion would be fair.

 

[her209]

$1.25B is much too low.

 

[Cerpin Taxt]

$1.25B is much too low.

That's my impression, too.

 

[sdifox]

the settlement is really the 5 year cross patent. Not the 1.25B, that is just legal fees.

 

[SunSamurai]

Now where are the people telling us it was ok for Intel to be doing what they did?

Obviously THEY didnt even think so.

lol Love it.

 

[Mike Gayner]

Very good new for everyone (except Intel)

Exactly, hope they can get back on the horse and start competing, for the sake of all of us!

This is BS, AMD's current line is very competitive, especially from a price/performance standpoint.

 

[AmdEmAll]

I was going to buy AMD stock 2 days ago. I fucked up

 

[Adrenaline]

1.25 billion is nothing to Intel. I think the kicker was AMD getting to use some of their stuff for 5 years. I wonder if that agreement means they don't have to pay royalties?

That would be the part to look at.

 

[Balt]

Doesn't seem to be having any effect on Intel's stock.

 

[Locut0s]

Doesn't seem to be having any effect on Intel's stock.

It shouldn't that's almost a drop in the bucke for them. Well almost.

 

[sandorski]

1.25 billion is nothing to Intel. I think the kicker was AMD getting to use some of their stuff for 5 years. I wonder if that agreement means they don't have to pay royalties?

That would be the part to look at.

The Cash is good, the Patents I'm not really sure how beneficial that is for AMD, but the change in Business Practices, which I assume stops Intel from doing that shit again, is likely the best news for AMD.

 

[OCGuy]

In other news, it will only take AMD 2 years to lose it all.

 

[spidey07]

Now where are the people telling us it was ok for Intel to be doing what they did?

Obviously THEY didnt even think so.

lol Love it.

A settlement means Intel admits no wrongdoing.

 

[SunSamurai]

Intel fucked themselves over here.

AMD now has a cool 1.25 Billion, they now have the root for the underdog status again. I forsee in a 3~ years AMD overtaking the top CPU spot again unless Intel gets some management that doesnt become lazy as fuck when they are the undisputed ruler of the high-end for a few years.

Life is just a bunch of cycles. (ask any woman)