AMD and Intel Officially Announce Settlement of All Disputes

[MaxBurn]

This is pretty big:

http://www.amd.com/us/press-releases/Pages/amd-press-release-2009nov12.aspx

http://www.intel.com/pressroom/archive/releases/2009/20091112corp_a.htm

AMD and Intel Officially Announce Settlement of All Disputes

Although we announced this earlier this morning, I wanted to point out the official press release from both AMD and Intel says that all claims have been dropped and that both parties agreed that the settlement was "intended solely as a compromise of disputed claims, and was not to be understood as a concession or determination that either party has engaged in any wrongdoing. big grin

Under the terms of the Settlement Agreement, AMD agreed to drop all pending litigation against Intel, including the case in the U.S. District Court in Delaware and the two cases pending in Japan. AMD also agreed to withdraw all of its regulatory complaints against Intel worldwide. AMD and Intel obtained patent rights from a new 5-year cross license agreement, and AMD and Intel relinquished any claims of breach from the previous license agreement. Intel also entered into a license agreement with Global Foundries, Inc., a manufacturing entity formed by AMD and Advanced Technology Investment Company. The parties agreed that the settlement was intended solely as a compromise of disputed claims, and was not to be understood as a concession or determination that either party has engaged in any wrongdoing.

 

[Chewy509]

Nice to see.

At least the dollars used for suing each other, can now go back into R&D for bigger and better products...

 

[timwhit]

At least the dollars used for suing each other, can now go back into R&D for bigger and better products...

Maybe they are both going to sue ARM?

 

[Will Rickards]

I was actually surprised. Thought the number was low. AMD must be hurting for cash.

 

[P5-133XL]

It seems to me that 1.5b is Intel getting off really cheap. Either AMD must be desperate or that cross-licensing agreement is very valuable and/or necessary for AMD's future survival: I find it hard to believe that Intel is getting as much as AMD from the cross-licensing.

 

[Chewy509]

It seems to me that 1.5b is Intel getting off really cheap. Either AMD must be desperate or that cross-licensing agreement is very valuable and/or necessary for AMD's future survival: I find it hard to believe that Intel is getting as much as AMD from the cross-licensing.

I would say both desperate for $$$ and the cross-license agreement was valuable.

 

[sechs]

The market cap of AMD is about $4.3 billion, and that's after today's ~22% run-up. That means Intel just gave AMD almost a third of its value -- in cash. That's a pretty good score in my book.

 

[Will Rickards]

Yes but what is the market cap of intel?

 

[sechs]

As of Friday, it was $109.45 billion.