Print 91 comment(s) - last by misbfa1.. on Nov 17 at 1:36 PM

Intel, AMD kiss and make up

Intel and AMD have been involved in long-standing dispute over intellectual property and antitrust issues. Intel was fined $1.45B by the EU for its anticompetitive practices and last week, New York Attorney General Andrew Cuomo filed an antitrust lawsuit against Intel.

Cuomo had rather harsh words for Intel, stating, “Rather than compete fairly, Intel used bribery and coercion to maintain a stranglehold on the market. Intel’s actions not only unfairly restricted potential competitors, but also hurt average consumers who were robbed of better products and lower prices.”

However, Intel and AMD now appear to be making amends. The pair issued a joint statement today which reads, “While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development.”

As a part of the settlement, Intel will pay AMD $1.25 billion, AMD will drop all of its pending lawsuits against Intel, and the pair will enter into a new 5-year cross license agreement. In addition, Intel will "abide by a set of business practice provisions" in the future.

AMD CEO Dirk Meyer today championed the agreement, stating, "Today, I am pleased to announce the last major component of that transformation – in the form of a transparent and public agreement with Intel to create a level playing field in the x86 processor industry – taking us one big step closer to achieving our bold vision."

Meyer continued, adding, "Today marks the beginning of a new era... one that confirms that the game has changed for AMD. It is an important milestone for us, for our customers, our partners, and most important – for consumers and businesses worldwide. In addition, it represents the culmination many years of litigation and regulatory engagement."

Following the announcement, AMD shares are up 25 percent to $6.61 while Intel is up almost a percentage point to $20.05 as of 10:00 AM EST.

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All I gotta say is...
By bradmshannon on 11/12/2009 9:46:27 AM , Rating: -1
daaaaaaaamn! That's whacked!

RE: All I gotta say is...
By kiwik on 11/12/2009 9:48:44 AM , Rating: 3
AMD is gonna turn profitable for a quarter?

RE: All I gotta say is...
By Sulphademus on 11/12/2009 9:49:39 AM , Rating: 1
Or pay down their debts. Here's to AMD in the black in the near future! *cheers*

RE: All I gotta say is...
By bupkus on 11/12/2009 9:52:53 AM , Rating: 2
You think the consumer can take a breath if Intel takes its stranglehold off our throats?

RE: All I gotta say is...
By Lord 666 on 11/12/2009 10:17:01 AM , Rating: 2
Nah, they will have to quickly give it back to pay the fines of Hector's insider trading.

RE: All I gotta say is...
By Mitch101 on 11/12/2009 10:23:36 AM , Rating: 2
Now you have to find the Inside people at Intel who knew they were going to settle the lawsuit.

RE: All I gotta say is...
By Mitch101 on 11/12/2009 10:25:50 AM , Rating: 2
Oh and Hector cant give himself a big bonus on the settled lawsuit.

RE: All I gotta say is...
By weskurtz0081 on 11/12/2009 10:26:55 AM , Rating: 2
I don't think the corporation will have to pay anything for the actions of Hector Ruiz in regards to the insider trading. He is the one that will get in trouble, not AMD.

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