Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Elmer Phud who wrote (256436)	10/7/2008 11:46:42 AM
From: Petz	Respond to of 275872

re: <its Back to Court> Make my day! Petz

To: Elmer Phud who wrote (256436)	10/7/2008 12:21:31 PM
From: gzubeck	Read Replies (1) \| Respond to of 275872

Ephud, Here's someone elses interpretation of the x86 contract... investorvillage.com There is no danger to the x86 license at all. Intel can pull the license only if AMD's majority (i.e. 50%+) ownership changes hands. And the x86 license doesn't prevent AMD from going fully fabless if it wanted to. The only disincentive to going fabless is that if more than 20% of AMD's revenues came from non-AMD fabs, then Intel could impose a royalty. With this deal the fabs will only be 45% owned by AMD, so AMD could take 65% (i.e. 45+20) of the production from these facilities without royalty. I know Jag will disagree with my assessment but I think his information is wrong. The rumours of AMD-Intel have existed for a long time in this very form, and I think it is likely true.

To: Elmer Phud who wrote (256436)	10/7/2008 2:48:53 PM
From: mas_	Read Replies (1) \| Respond to of 275872

In return ATIC will own 55.6% of the foundry, and will have half of the voting rights. AMD will own the remaining 44.4% and will have the other half of the voting rights. anandtech.com 50-50 control ;-).

To: Elmer Phud who wrote (256436)	10/7/2008 5:35:54 PM
From: mas_	Read Replies (2) \| Respond to of 275872

No I am right. It's either 50% ownership OR control. AMD has 50% voting rights control. Nice of Intel to give AMD an easy get out like that ;-). contracts.corporate.findlaw.com 1.22. "Subsidiary" shall mean any corporation, partnership, joint venture, limited liability or other entity, now or hereafter, in which a party (a) owns or controls (either directly or indirectly) or originally contributed (either directly or indirectly) at least fifty percent (50%) of the tangible and intangible assets of such entity; and (b) owns or controls (either directly or indirectly) either of the following: (1) if such entity has voting shares or other securities, at least fifty percent (50%) of the outstanding shares or securities entitled to vote for the election of directors or similar managing authority and such entity is under no obligation (contractual or otherwise) to directly or indirectly distribute more than seventy percent (70%) of its profits to a third party, or (2) if such entity does not have voting shares or other securities, at least fifty percent (50%) of the ownership interest that represents the right to make decisions for such entity and an interest sufficient to receive at least thirty percent (30%) of the profits and/or losses of such entity. (c) An entity shall be deemed to be a Subsidiary under this Agreement only so long as all requisite conditions of being a Subsidiary are met.