Intel to pay AMD $1.25B!!!!!!!!!!!

[randomizer]

Both TC's kid and wife will be Jenny? Crikey.

 

[JAYDEEJOHN]

I never said the lawyers pull the strings, and if they were so right, and so adamant about this, as some claim, having other info backing them, as others claim, and Intel has the "other" story, which certainly was told in Japan and Korea, and it was irrefutable evidence leading to Intels innocence, then itd be unwise for Intel to go against this would it not?
Thats the story were getting "painted" here, and all Im saying is, hogwash.
Denying the Japans findings and the Korean findings, and accusing a international body of corruption, coming from this case is ironic is it not?
Then, ignoring and again making those same allegations towards the NY AG?
Are we to assume all is corrupt, and willing to do anything, because these entities control things and are corrupt in this very case?
To me, this isnt even a pot n kettle, but nice try at even that

 

[Scotteq]

Towards that end - I'd like to point out that Moody's have upgraded AMD's credit worthiness from B3 to B2. Still not "good". But certainly less bad.


http://finance.yahoo.com/news/Moodys-raises-AMD-apf-3385572481.html?x=0&.v=1

NEW YORK (AP) -- Moody's Investors Service said Monday it is hiking its credit ratings for Advanced Micro Devices Inc. after the chip maker won a $1.25 billion settlement in its antitrust dispute with rival Intel Corp.

Moody's raised AMD's overall rating to B2, up one notch from B3. The agency also raised its rating on $390 million in notes due 2012 to B2, up two notches from Caa1. A B2 is still considered non-investment, or "junk," grade.

The ratings outlook is "Positive."

Moody's said the settlement will help AMD lower its debt level and allow it to operate more effectively by cutting its capital costs.

Though Intel has not admitted to any wrong doing, it has agreed to pay AMD the $1.25 billion rather than risk going to trial. AMD has accused Intel of using unfair sales tactics to push competitors out of the market.

AMD shares were down 7 cents, or 1.1 percent, to $6.46 in afternoon trading, while Intel, which announced Monday it was raising its dividend, jumped 43 cents, or 2.2 percent, to $20.25.

It really isn't bad...seriously I dunno what is up with these 'analysts' or what they are on sometimes. I think all they do is look at the finances and nothing else, but in order to get to the true worth of a company you need to understand that company.

AMD could flog the fabs to ATIC and they'd be debt free, fab R&D free, in the black and making a profit coming out of a recession. On top of that they have a dominant position in graphics and a good budget-midrange in cpu's - and if Thuban is out in January/February they will probably have the fastest cpu too. Finally? Intel have just signed up to a lot of measures that prevent them from acting like the monopoly they are.

How can anybody suggest AMD are in bad shape now? They just don't know the company.

Understand that Moody's don't care a whit about what the gizmo/gadget does. They are purely financial creatures, and are concerned only with a given company's fiscal muscle. So your assesment that they look at the finances and nothing else is correct. Please understand, though, AMD's credit was upgraded - this is still a good thing.

But if you want us to believe that somehow doesn't matter, because Moody's don't 'know the company'. That's going to be a more difficult sale. Firstly, Moodys are one of the "Big Three" rating firms and as such set the standards for corporate credit; and they have been following AMD for well over a decade. Granted, they're only one source and a serious investor would also check with Standard and Poor's, and Fitch (the other two of the three I mentioned) but still... Moodys have been around and providing this service for a hundred years (really! est. 1909).

Bad Credit? We all know it's hard to get loans at competitive rates. But more appropriate on this scale is that your ability to sell bonds - if you can find people who will even carry them for you - is greatly hurt. Semiconductors are a capital intensive industry, and a given company's credit rating directly impacts their ability to raise cash for their projects. Complaints about Intel's R&D? Corporate bonds are where the financing comes for future projects, guys.

Purely opinion, but I would at least partly attribute AMD's weak credit rating to slow product delivery and (potentially) to the rather overpublicised bugs in PH I. Why? If the company were able to raise more cash to to fund their R&D, they logically should have been able to deliver more quickly and test more thoroughly. Now that we're in PH II land, it's clearly water under the bridge - BUT... If they had the credit/funding then?? How much better would/could they be now?

As for your second paragraph - Yah, AMD could do those things. But they haven't yet. If the processor is as good as you guys would have us believe, then great! As for the others? The long term value in doing those things is still arguable. Say TSMC quickly turn profitable. What then? If AMD sell their share, then that's ongoing income traded away for a very short term pop. Nice to have money now, but better still to make the longer term investment and shore up the company's future.

 

[chunkymonster]

amd just sucked in this competition, so there is no reason to pay. why? because amd's processor stinks and no one buying them so they start suing intel? they just lost the race and then blame other people?

again they are suck douchebags and phenom is piece of ***.

hang in there intel, time to rip amd apart!!!

You obviously have no sense of context and history. Go spew your FUD elsewhere...

 

[fazers_on_stun]

Id guess the lawyers would do exatly whats best for the company, and, if they thought they coud win, theyd still be arguing.
They also do whats best for the company by calming the waters, and propping Intel up as the good guys, always taking the high road, and its just a misunderstanding Joe Intel worker, so feel good for the company you work for, and we'll make sure not to mention to your the other findings of guilt against us.
Sorry, but I aint "guessing" nuttin. Theyre three and out, settled outside of court, and have at least 1 more filing against them, VIA agrees with AMD, and I bet if MJ were alive, hed say settle too, while OJ would definately tell them to. Good company to be in eh?

Well since neither of us were there to hear first-hand what was said, I'd "guess" your "guess" is just as good as mine 😀. Which explains why I prefaced my original comment with "FWIW"...

And what's up with the elementary "guilt by association" debating technique?? Or do you think an anti-trust action is the same as pedophilia or murder charges??

Hmm, "JDJ, "MJ" and "OJ" - I guess I see a pattern here 😀.

 

[cheesesubs]

You obviously have no sense of context and history. Go spew your FUD elsewhere...

as being an all-time intel supporter i believe intel is innocent in this trail and have no reason to pay to amd any coin.

unfair sale? because intel lower the price so pushing amd's processor out of stock? well a single e8400 is cost as low as 109 bucks and it pwns athlon II in any area of benchmarking. an e5300/5400 also murdering athlon x2 and phenom x2 in p/c so why is it wrong? because amd simply cant bring any **** to compete with intel and lower their price as well? stop blame on intel just what they did to nvidia when their gpu were stink back few years ago. plus to me amd's engineerer were know how to holding fork and knife.....

nothing but excuse! i'd love to see amd go bankrupt again. i know there are many of amd fan boy there and they just dont learn why amd become like that....

 

[JAYDEEJOHN]

Thats right, Im actually Paul Otellini!!!!!!!!!!!
Just playin both sides of the fence, just to make sure theres a future for me out there heheh
Just get get me my initials heheh

 

[ElMoIsEviL]

as being an all-time intel supporter i believe intel is innocent in this trail and have no reason to pay to amd any coin.

unfair sale? because intel lower the price so pushing amd's processor out of stock? well a single e8400 is cost as low as 109 bucks and it pwns athlon II in any area of benchmarking. an e5300/5400 also murdering athlon x2 and phenom x2 in p/c so why is it wrong? because amd simply cant bring any **** to compete with intel and lower their price as well? stop blame on intel just what they did to nvidia when their gpu were stink back few years ago. plus to me amd's engineerer were know how to holding fork and knife.....

nothing but excuse! i'd love to see amd go bankrupt again. i know there are many of amd fan boy there and they just dont learn why amd become like that....

Wow.. the all elusive Intel fanboi.

A curious specimen to say the least. Should we capture it and release it elsewhere or leave it to roam around for a little while longer?

😛

 

[JAYDEEJOHN]

Youll see Intel paying out more billions and possibly broken up and having x86 licensing constraints be fore youll see AMD go bankrupt.
I can believe anything, doesnt make it tru.
I do wonder how many lives were ruined by Intes actions tho, not that its murder, but it can cause alot of huge problems.
Anyone who thinks Intels innocent, prove it by dispelling whats on the PDF, not by opinions, please.
No he said she saids, but what what we know.
Saying its out of context is no different. Theres a case against Intel in US courts, and believing, or Intels lawyers say to Intel employees really isnt worht mention compared to the hard facts the NY AG has layed down.
Go from there, using those facts, otherwise, its just an opinion, and those who think Intels innocent is outnumbered hugely in their opinions

 

[JAYDEEJOHN]

Wow.. the all elusive Intel fanboi.

A curious specimen to say the least. Should we capture it and release it elsewhere or leave it to roam around for a little while longer?

😛

I say, let it roam, what harm can it cause, its not like we havnt seen a few thousand times before

 

[Scotteq]

...fanbois to the left of me...

...fanbois to the right of me...

 

[jennyh]

Understand that Moody's don't care a whit about what the gizmo/gadget does. They are purely financial creatures, and are concerned only with a given company's fiscal muscle. So your assesment that they look at the finances and nothing else is correct. Please understand, though, AMD's credit was upgraded - this is still a good thing.

I know they upgraded AMD, but I consider that B2 rating to be a lot lower than what it should be.

Purely opinion, but I would at least partly attribute AMD's weak credit rating to slow product delivery and (potentially) to the rather overpublicised bugs in PH I. Why? If the company were able to raise more cash to to fund their R&D, they logically should have been able to deliver more quickly and test more thoroughly. Now that we're in PH II land, it's clearly water under the bridge - BUT... If they had the credit/funding then?? How much better would/could they be now?

I'm unsure how 'slow delivery' as you put it should affect AMD's credit rating. Are AMD having trouble paying off debts? For me this shows what is wrong with so many parts of the system - when you have Moody's determining a company's credit rating, which others use as the basis of whether or not it is too risky or not, based on what exactly?

As for your second paragraph - Yah, AMD could do those things. But they haven't yet. If the processor is as good as you guys would have us believe, then great! As for the others? The long term value in doing those things is still arguable. Say TSMC quickly turn profitable. What then? If AMD sell their share, then that's ongoing income traded away for a very short term pop. Nice to have money now, but better still to make the longer term investment and shore up the company's future.

Yes the long term investment looks like its the smart option of course, but that shouldnt take away from the fact that AMD have a lot more assets than they have debt. To me that is a low risk company as regards credit.

 

[ElMoIsEviL]

Understand that Moody's don't care a whit about what the gizmo/gadget does. They are purely financial creatures, and are concerned only with a given company's fiscal muscle. So your assesment that they look at the finances and nothing else is correct. Please understand, though, AMD's credit was upgraded - this is still a good thing.

I know they upgraded AMD, but I consider that B2 rating to be a lot lower than what it should be.

Purely opinion, but I would at least partly attribute AMD's weak credit rating to slow product delivery and (potentially) to the rather overpublicised bugs in PH I. Why? If the company were able to raise more cash to to fund their R&D, they logically should have been able to deliver more quickly and test more thoroughly. Now that we're in PH II land, it's clearly water under the bridge - BUT... If they had the credit/funding then?? How much better would/could they be now?

I'm unsure how 'slow delivery' as you put it should affect AMD's credit rating. Are AMD having trouble paying off debts? For me this shows what is wrong with so many parts of the system - when you have Moody's determining a company's credit rating, which others use as the basis of whether or not it is too risky or not, based on what exactly?

As for your second paragraph - Yah, AMD could do those things. But they haven't yet. If the processor is as good as you guys would have us believe, then great! As for the others? The long term value in doing those things is still arguable. Say TSMC quickly turn profitable. What then? If AMD sell their share, then that's ongoing income traded away for a very short term pop. Nice to have money now, but better still to make the longer term investment and shore up the company's future.

Yes the long term investment looks like its the smart option of course, but that shouldnt take away from the fact that AMD have a lot more assets than they have debt. To me that is a low risk company as regards credit.

Financial firms don't see it that way: http://www.auditintegrity.com/assets/files/newsroom/2009/AI%20Release%202009-0916%20Bankruptcy.pdf

AMD is on the list of the companies most likely to go belly up.

 

[Scotteq]

Comments inline.....

Understand that Moody's don't care a whit about what the gizmo/gadget does. They are purely financial creatures, and are concerned only with a given company's fiscal muscle. So your assesment that they look at the finances and nothing else is correct. Please understand, though, AMD's credit was upgraded - this is still a good thing.

I know they upgraded AMD, but I consider that B2 rating to be a lot lower than what it should be.

Well, thank you for your opinion. But like I mentioned: Moodys has been rating Corporate credit for a hundred years. They base their asessments in hard financial facts rather than opinion based on one's love for a particular technology. Yeah - It's possible to blow a little smoke up their butts from time to time, but these guys have looong memories and therefore doing so is ill advised. And like I said - You are perfectly free to check with Standard & Poors and Fitch if you want confirmation. Be advised: All of these companys use the same data and have the same conservative outlook. It would be highly surprising to see S&P and Fitch's collective opinions differ in any significant way.

But more importantly, investment firms have a hundred year track record of listening to these guys, and make many billions of dollars in investments based in Moody (and S&P and Fitch) ratings. Maybe you don't know who they are. Maybe you don't care. But the institutions with money enouth to Make Things Happen for companies like AMD *do*.

So yeah - It's important.

Purely opinion, but I would at least partly attribute AMD's weak credit rating to slow product delivery and (potentially) to the rather overpublicised bugs in PH I. Why? If the company were able to raise more cash to to fund their R&D, they logically should have been able to deliver more quickly and test more thoroughly. Now that we're in PH II land, it's clearly water under the bridge - BUT... If they had the credit/funding then?? How much better would/could they be now?

I'm unsure how 'slow delivery' as you put it should affect AMD's credit rating. Are AMD having trouble paying off debts? For me this shows what is wrong with so many parts of the system - when you have Moody's determining a company's credit rating, which others use as the basis of whether or not it is too risky or not, based on what exactly?

You're reading that backwards - Low Credit rating has a strong negative effect on the company's ability to raise money. If (and this is conjecture, mind) AMD's credit were better and they were therefore able to raise more money, faster, back then, it is logical AMD would have had more resource available to do more thorough testing and ramp up production faster.

As for your second paragraph - Yah, AMD could do those things. But they haven't yet. If the processor is as good as you guys would have us believe, then great! As for the others? The long term value in doing those things is still arguable. Say TSMC quickly turn profitable. What then? If AMD sell their share, then that's ongoing income traded away for a very short term pop. Nice to have money now, but better still to make the longer term investment and shore up the company's future.

Yes the long term investment looks like its the smart option of course, but that shouldnt take away from the fact that AMD have a lot more assets than they have debt. To me that is a low risk company as regards credit.

Well... Back to my first point: Thank you for your opinion, but the guys who have been doing credit ratings for a hundred years are saying otherwise.

 

[chunkymonster]

as being an all-time intel supporter i believe intel is innocent in this trail and have no reason to pay to amd any coin.

Being a supporter and being a rabid fanboi are two different things. Spewing FUD and offering an informed (albeit biased) opinion are also two different things. Might want to learn the difference.

unfair sale? because intel lower the price so pushing amd's processor out of stock? well a single e8400 is cost as low as 109 bucks and it pwns athlon II in any area of benchmarking. an e5300/5400 also murdering athlon x2 and phenom x2 in p/c so why is it wrong? because amd simply cant bring any **** to compete with intel and lower their price as well? stop blame on intel just what they did to nvidia when their gpu were stink back few years ago. plus to me amd's engineerer were know how to holding fork and knife.....

This entire thread and settlement has nothing to do with what products Intel or AMD currently have on the market. Again, no sense of context and history relating to the particulars of the anti-competitive lawsuits and judgments against Intel and seemingly no understanding of the agreements between Intel and AMD. Also, not for nothing, but a $99 Athlon II X4 620 is a much better deal than an E5400, regardless of what the benchmarks show. C'mon, a QUAD CORE FOR $99! AMAZING!

nothing but excuse! i'd love to see amd go bankrupt again. i know there are many of amd fan boy there and they just dont learn why amd become like that....

Hoping that any company goes bankrupt is just asinine...just remember to use some lubrication when you decide to pull your head out of your ass.

 

[spongebob]

Financial firms don't see it that way: http://www.auditintegrity.com/assets/files/newsroom/2009/AI%20Release%202009-0916%20Bankruptcy.pdf

AMD is on the list of the companies most likely to go belly up.

That report is nearly two months old - I would expect a $1.25 billion cash infusion to change the outlook somewhat.

 

[verndewd]

make it flatter, more nuetral than posotive or slightly posotive.

 

[spongebob]

Hoping that any company goes bankrupt is just asinine...

^+1

 

[ElMoIsEviL]

That report is nearly two months old - I would expect a $1.25 billion cash infusion to change the outlook somewhat.

Intel will not be giving AMD one large lump sum. It will be delivered in payments therefore the outlook is not exactly changed (having to rely on a competitor for income isn't really something worth bragging about to the banks).

That being said, AMD is still in rough shape. What AMD need is a killer product but it appears that for all of 2010 (6-core CPU aside) they will have little if anything exciting to offer (Bulldozer doesn't hit until 2011).

 

[jennyh]

Actually it's all to be paid within 30 days elmo.

What exciting is coming from intel in 2010 except more cores? Nothing I can see.

 

[ElMoIsEviL]

Actually it's all to be paid within 30 days elmo.

What exciting is coming from Intel in 2010 except more cores? Nothing I can see.

Within 30 days or not doesn't change the outlook. AMD needs a competitive product. I am willing to bet that AMDs credit rating won't change even after the injection of that 1.25 Billion.

As for your second question...

That's a question which ignores the fact that ANYTHING Intel releases right now is exciting. They hold the performance crown and all their releases are interesting (hence why most tech sites write almost nothing but Intel related articles and no it's not because of a bias).

When AMD releases a product we all rush to see if it will beat a Core 2 Quad. When Intel release a product we all rush to see how many multiples of AMD Cores it would theoretically take to match it.

This is the market we currently are living under and it was a complete role reversal of this for several years with AMD being the ones at the helm.

Gulftown looks mighty interesting. AMDs 6-core CPU will likely be bested by a mildly overclocked Core i7 920 (as Istanbul is) which is quite the yawn in my humble opinion.

 

[jennyh]

Maybe they should be shoving those awesome nehalems into the top 5 supercomputers then? Oh wait...

 

[JAYDEEJOHN]

Im looking forwards to their cpu/IGP solutions.
May not beat Intels cpus, but they will sell

 

[randomizer]

as being an all-time intel supporter i believe intel is innocent in this trail and have no reason to pay to amd any coin.

Since your first sentence has stated that your beliefs are not based on evidence but your life-long support for Intel, you have completely invalidated every other post you've made as fanboy FUD. Congratulations.

 

[jennyh]

2010 is a good year for AMD. They have been through this before in the past. So intel move to 32nm - did yorkfield really own kentsfield so much that anyone noticed? The millions of Q6600's still sitting in most people's pc's says 'no'.