What, precisely, is there to "buy"? AMD's entire x86 business, responsible for 90% of its revenues, is mortgaged by the Intel x98 license. Rather than investing in developing its own competitive, proprietary architecture, AMD instead chose the easy path and copied Intel's hard work and ingenuity, taking an x86 license. By electing to ride on someone else's shoulders, AMD's entire fundamental source of revenue became unsaleable. The Intel x86 license terminates in the event of a change in control.
This means that the only parts of AMD's business that are eligible for sale are those parts making up a paltry 10% of the company's modest revenues. How would you value a shrinking business that generates 1/10th of AMD's total annual revenues? What would such a business be worth?
AMD will not be bought by anyone. Its culture of sloth and tattling - of always taking the easy path - has virtually ensured that imitator AMD will go bankrupt without being acquired.
AMD and Intel Announce Settlement of All Antitrust and IP Disputes
SUNNYVALE/SANTA CLARA, Calif. --11/12/2009
Intel Corporation and Advanced Micro Devices (NYSE: AMD) today announced a comprehensive agreement to end all outstanding legal disputes between the companies, including antitrust litigation and patent cross license disputes.
In a joint statement the two companies commented, "While the relationship between the two companies has been difficult in the past, this agreement ends the legal disputes and enables the companies to focus all of our efforts on product innovation and development."
Under terms of the agreement, AMD and Intel obtain patent rights from a new 5-year cross license agreement, Intel and AMD will give up any claims of breach from the previous license agreement, and Intel will pay AMD $1.25 billion. Intel has also agreed to abide by a set of business practice provisions. As a result, AMD will drop all pending litigation including the case in U.S. District Court in Delaware and two cases pending in Japan. AMD will also withdraw all of its regulatory complaints worldwide. The agreement will be made public in filings with the Securities and Exchange Commission.