Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 259.65

+2.3%

Jan 23 9:30 AM EST

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To: THE WATSONYOUTH who wrote (33847)	3/27/2001 11:13:42 PM
From: Joe NYC	Read Replies (2) of 275872

TWY, The deal between Cyrix and IBM was not just barter. It involved cash payments from Cyrix to IBM. The wafers with Cyrix design was part of the compensation, but not the only part, and not even a major part. IBM had an option to process additional wafers for their own use. I think it was assumed that IBM would do this to put these chips into their own computers, not to use the option to the fullest and flood the market. I have not seen the agreement so I don't know the details, but it was so horrible for Cyrix that NSM, after taking over Cyrix paid IBM a cash payment to terminate this contract. Joe

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