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Intel & AMD Decide To Stop Fighting

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  • Intel & AMD Decide To Stop Fighting

    Phoronix: Intel & AMD Decide To Stop Fighting

    Intel and AMD have jointly announced this morning that they have decided to stop fighting each other and have settled all outstanding legal disputes. These fights, of course, have been over anti-trust litigation, patent disputes, and other matters that have been burdening both companies for the past years. As part of this settlement, Intel will be paying AMD an amount of $1.25 billion USD and both companies have agreed to a new 5-year cross license deal...

    http://www.phoronix.com/vr.php?view=NzY5Ng

  • #2
    What's that? I hear Lucifer ice-skated to work today!

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    • #3
      In other words;
      Intel is a thieving bastard that was in the wrong and has finally accepted the fact that they would lose.

      Way to go AMD!

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      • #4
        The subheadline is wrong. It says 'With $1.5B USD Payout.'

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        • #5
          Umm

          Well a nice payoff sounds good, but that doesn't mean Intel won't be up to the same tricks. Sounds fishy to me...

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          • #6
            I guess the critical question is whether this indicates a general shift in Intel's attitude toward doing business ("Intel has also agreed to abide by a set of business practice provisions") or merely the beginning of collusion with AMD (previously, big payments were an incentive for "strategic alignment" with Intel).

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            • #7
              $1.5B sounds very cheap to me.

              If this had gone to trial, Intel would have lost big $$$.

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              • #8
                Yesterday's closing market cap was 3.5~ billion with 670.3 million shares at a price of ~5.32. If the payoff is 1.25 billion, why doesn't their market cap, and by extension share price, increase by at least that amount?

                By my math, the 1.25 billion is 35% of 3.5~ billion market cap. Why has the stock increased only 22%?

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                • #9
                  Originally posted by linuxjacques View Post
                  $1.5B sounds very cheap to me.

                  If this had gone to trial, Intel would have lost big $$$.
                  problem with trial is that its taking 30 years in cases like this.

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                  • #10
                    Originally posted by mattst88 View Post
                    Yesterday's closing market cap was 3.5~ billion with 670.3 million shares at a price of ~5.32. If the payoff is 1.25 billion, why doesn't their market cap, and by extension share price, increase by at least that amount?

                    By my math, the 1.25 billion is 35% of 3.5~ billion market cap. Why has the stock increased only 22%?
                    There are many possible explanations. One likely reason is that the previous price already included the investor's expectations for the outcome of any settlements. Since there was still a large jump, this means that a positive outcome for AMD was not fully expected, but since it did not equal the 35% that some investors did think that AMD would profit from the Intel conflict. Remember that stock prices reflect the FUTURE earning potential for a company.

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                    • #11
                      Originally posted by Jebtrix View Post
                      Well a nice payoff sounds good, but that doesn't mean Intel won't be up to the same tricks. Sounds fishy to me...
                      The payout is the cash part of the settlement. There's going to be verbiage not disclosed to us as part of that- if Intel's paying $1.5B, that's quite a bit of cash and translates into some clauses that they have to have probably agreed to that would allow AMD to drag them right back into court over if they don't quit doing many of the things they were doing.

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                      • #12
                        Originally posted by Svartalf View Post
                        The payout is the cash part of the settlement. There's going to be verbiage not disclosed to us as part of that- if Intel's paying $1.5B, that's quite a bit of cash and translates into some clauses that they have to have probably agreed to that would allow AMD to drag them right back into court over if they don't quit doing many of the things they were doing.
                        Thats exactly right...
                        The part where it says
                        Intel has also agreed to abide by a set of business practice provisions

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                        • #13
                          Originally posted by thefirstm View Post
                          What's that? I hear Lucifer ice-skated to work today!
                          yeah, I think so.

                          Now I'm waiting for the call from the girl that said 3 years ago that she would've sex with me when hell is frozen...

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                          • #14
                            Originally posted by Svartalf View Post
                            The payout is the cash part of the settlement. There's going to be verbiage not disclosed to us as part of that- if Intel's paying $1.5B, that's quite a bit of cash and translates into some clauses that they have to have probably agreed to that would allow AMD to drag them right back into court over if they don't quit doing many of the things they were doing.
                            Wow! I'm very impressed with this news. I knew that AMD and Intel have been bickering in the past. 1.5Billion, sounds like a lot. Not sure if AMD lost a lot more out of it though. I'd like to know if AMD are just biting the bullet to keep peace. Maybe it's costing them too much in court? Or maybe the next product line will include some new shared technology..? Probably realised at the end of it all, that they're both just making the lawyers rich, and the ping pong sessions in court never end.

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                            • #15
                              I am not really sure if AMD deserves that much money, because if they would have been in a similar market position they would have probably done the same. At least they get some extra money to buy wafers to produce some ATI HD series 5 chips They could have sold much more chips if they would have been available - not really clever...

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