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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: AK2004 who wrote (117686)6/26/2000 2:59:00 PM
From: chic_hearne  Read Replies (2) | Respond to of 1577405
 
Re: Hitachi and Toshiba did not just gave up and more likely they were under pressure. That kind of pressure could come only from intel and hence rambus is intel's puppet. The deadlines will be extended.

Albert,

I find this whole Rambus warrent thing very unethical. I can't believe it's legal to do business this way. It very well could have gone this way with Hitachi or Toshiba:

Rambus: We want to you to license SDRAM and DDR from us.

Tosh/Hit: You must be crazy.

Rambus: We want a 5 year deal that will total about $100 million in payments to us.

Tosh/Hit: You are out of your mind, no way.

Rambus: To sweeten the deal, we'll give you warrents to $200 million worth of Rambus stock, so you come out ahead.

I don't know if it's possible that some of the negotiating went on this way, but it has become clear that some of the companies involved will make far more off the warrents than they will end up paying Rambus in royalties.

Is this kind of business practice legal? I'd think the SEC would be all over Rambus for this kind of royalty/warrent agreement.

chic