Intel Paying AMD $1.25 Billion For Settlement
Intel Corporation (NASDAQ:INTC) and Advanced Micro Devices, Inc. (NYSE:AMD) have come to an agreement. Intel will pay AMD $1.25 billion as part of the agreement. Previously AMD argued that Intel was using incentives for PC manufacturing companies to making exclusive deals with them. The litigation process started back in 2004.
AMD will be dropping their lawsuits in Delaware and two pending cases in Japan. They are also going to withdraw all regulatory complaints. However Intel isn’t completely off the hook yet. Government agencies could still bring a case against Intel. The European Union already fined Intel $1.45 billion this past May. Intel is appealing the fine from the European Union.
AMD and Intel have also made a cross-license agreement that will allow AMD to split into two companies. Globalfoundries is the other company that AMD has spun off. Globalfoundries does not have to worry about lawsuits from Intel either.
“Everybody is a winner here including Intel. They should be congratulated for trying to put this behind them and listen to everyone’s concerns as well as defend their rights,” stated AMD CEO Dirk Meyer in a conference call.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry