AMD grabs $1.25 billion in Intel antitrust settlement

by Stevie Smith - Nov 12 2009, 17:30

Leading computer processor maker Intel Corp. has today agreed to hand industry rival Advanced Micro Devices (AMD) a cool $1.25 billion USD in order to finally bring an end to prolonged legal hostilities between the two CPU manufacturers.

With such a hefty amount set to boost its depleted coffers, AMD has said it will drop all of the regulatory complaints brought against Intel, including all litigation that is presently pending. Furthermore, the two parties have also signed a cross licensing deal that will stretch across five-years.

News of the big-dollar settlement resulted in AMD shares jumping by some 20 percent, while industry analysts suggested the chipmaker will channel most, if not all, of the $1.25 billion USD into paying off outstanding debts of $3.2 billion USD.

Intel's decision to settle likely comes as an effort to ward off regulator investigations into its business practices following related antitrust complaints lodged by AMD over a period of around 12 years.

However, that may not be so clear cut; not least when considering that Intel is facing various regulatory fines brought before it by governments in Europe, Asia and the United States. The most potentially damaging of those fines emanates from Europe, where the European Commission has hit Intel to the tune of $1.45 billion for bullying PC makers into using Intel processors in their systems.

The popularity of Intel chips sees the Santa Clara-based company enjoying some 80 percent of the market share.

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