Intel To Settle Anti-Trust Issues With AMD

Intel has a few anti-trust issues right now, starting with the EU and the State Of New York. But their longest running anti-trust battle has been with rival AMD who sued them back in 2005. It looks like the latter is about to be settled:

Under terms of the deal, Intel will pay AMD US$1.25 billion, and has agreed to a set of business practice provisions, according to a statement from the companies.

AMD and Intel also said they have agreed to a new five-year cross-license agreement, and have given up claims of breach of contract from the previous license agreement.

“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,” the companies said in a statement.

On its part, AMD has agreed to drop all regulatory complaints worldwide and all pending legal disputes, including a case in U.S. District Court in Delaware and two cases in Japan. The agreement will be made public in filings with the Securities and Exchange Commission, the companies said.

This news is great for the value of AMD stock which is up by 22% as I type this. Intel stock has barely moved however. Could this be the start of Intel settling the other anti-trust issues that they have? Stay tuned.

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