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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: Jim McMannis who wrote (15355)10/21/2000 9:59:07 AM
From: EpinephrineRespond to of 275872
 
RE:<I've seen that at least 6 times today, if they keep it up it might turn into a really good rumor.>

Jim,

I want to stress that I am not personally familiar with the DEC / Intel litigation settlement and am only relaying what I was once told. I have not attempted to verify this information. I wouldn't even post it but I think that it has about as much credibility as any buyout rumors floating around on Yahoo and I would like to see what the historians on this thread think of it.

I was once told by someone who I don't unquestioningly trust but who sounded like he knew what he was talking about that an AMD buyout of any kind was extremely unlikely. His contention was that AMD has it's royalty free license to the EV6 bus and Alpha technology due to the settlement agreement resulting from the Intel / DEC litigation that also resulted in Intel fabbing Alpha chips for Compaq. This royalty free license was supposedly given to AMD and to another company or two and was explicitly non-transferable. I think that his contention was that the conditions also stipulated that Intel was forbidden to use the EV6 bus or related technologies. This was supposedly done to give AMD and the other beneficiaries a leg up but part of the deal supposedly included a provision that if AMD (or any of the other few beneficiary companies in the settlement) was ever bought then the deal was void and not only would AMD jeopardize their royalty free license but Intel would then be free to use the EV6 bus and Alpha technology if they wanted to. I am not sure how long this settlement was supposed to be in force but if true it would certainly be a consideration to any company that was evaluting AMD as an aquisition target.

Comments anyone? Was the guy that told me this just off his rocker? Does anyone know what he was talking about?

Regards,

Epinephrine