The world’s largest maker of microchips, Intel,
is to pay its main rival, AMD,
one and a quarter billion dollars
to settle a long running anti-trust and patent dispute.
In return, AMD will drop all its lawsuits against Intel.
Mark Gregory reports.
By reaching a settlement now,
the two sides avoid uncertainty over the outcome of
the trial and millions of dollars of legal costs.
The deal is a particular relief to AMD’s investors.
The company’s finance is being strained by
the unequal battle with Intel.
AMD shares rose nearly a third
in value on news of the deal,
but there are also advantages for Intel
which’s facing multiple investigations
into its business practices
along with several lawsuits by regulators
in the US, Europe and Asia.