back to article Intel cash pays down AMD debt

Less than a week after accepting $1.25bn from Intel in exchange for dropping its legal actions against Chipzilla, AMD has announced how it plans to use that windfall. In a trio of Wednesday announcements, the world's second-largest microprocessor designer revealed a plan to slash its debt by as much as $1.4 billion, thus …

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  1. Anonymous Coward
    Alert

    Not anything like AT&T

    AT&T was broken up by local and long distance service as well as by service areas. Intel's dominance is in the manufacturing of Intel MicroProcessors. Were you thinking that Intel should only be allowed to sell microprocessors in certain geographical areas while AMD would have other protected geographic areas?

  2. Ogi

    @Not anything like AT&T

    Correct me if I'm wrong, but I'm pretty sure Intel deals in more than just microprocessors.

    For one, they have their own chip sets, their own video cards, they also have their own flash memory division, and also build ARM derivatives (Xscale processors). There is plenty there to break up if they are found to be anti-competitive.

  3. Glen Turner 666

    Exactly like AT&T

    No, you'd remove Intel's vertical integration --- so it would break into a processor core IP company like ARM, into a flash memory company, into a fab company, and so on.

    Close to the same way that AT&T was split up --- into a number of retailers, a long-haul company, a product development company and so on. Consumers only noticed the increase in the number of companies offering retail telephony, but the changes went a lot deeper than that and were aimed at destroying AT&T's vertical integration as much as allowing retail competition.

  4. Mr Ian
    Thumb Down

    @AC 22:35

    The article specifically states "..that could result in the world's largest processor maker being broken into pieces much as AT&T was.." which could mean any type of split. If a split were to occur, I'd imagine their microprocessor business would be separated from their motherboard, or perhaps domestic and business-grade processors could be separated.

    So in a way it is exactly like AT&T. It may get split into different departments, for different target markets.

  5. Anonymous Coward
    Anonymous Coward

    Same as it always was

    On the other hand, AMD's existence is likely to encourage Intel into criminally abusing it's monopoly like position. There is nothing illegal itself about Intel having a monopoly.

  6. Greg D
    WTF?

    @ogi

    Err, all those products you listed are microprocessors of some type.

  7. Hud Dunlap
    Megaphone

    not like AT&T

    The old AT&T provided good service, reliable phones and pay phones in areas where people did not have enough access to personal phones. Now after all of the breakups and recombining I can only get DSL from AT&T. Their service sucks and there aren't any pay phone for the poor now. My only other choice is to buy cable from one available company that gives me sixty channels I don't want and goes up every year.

    Intel is about the only shining example of American Industry left. Breaking it up would be really stupid.

  8. windywoo
    Headmaster

    Greg D

    All those products certainly aren't microprocessors. They are all electronic goods, PC related if thats what you mean, but flash memory is far from being microprocessors.

  9. Anonymous Coward
    Megaphone

    @Hud Dunlap - not like AT&T #

    > there aren't any pay phone for the poor now

    You mean the drug dealers... who would use the phones to avoid apprehension by the law.

    It is cheaper for the poor to use a pay-as-you-go cell phone than it ever was to use a pay phone!

  10. Wallyb132
    WTF?

    @Hud Dunlap...

    Mr. Hud Dunlap,

    Please, get back on your medication, and if you dont take medication, please start... Intel is a shining example of an insecure and abusive criminal enterprise. breaking them up would be the best thing that could happen to the IT industry...

  11. asdf Silver badge
    FAIL

    so sad how long will Intel float AMD

    AMD is such a shining example of a company that stole near bankruptcy from the jaws of market relevance with the excellent due dilligence ole Hector did massively overpaying for ATI. Sad enough he screwed the consumers by taking out one legitimate competitor in the cpu space but he also did a good job hosing another in the gpu space. I wonder how long Intel and European/American governments will keep this constant money losing enterprise afloat. I also wonder how much of a pension Intel is giving Hector for helping its margins with his excellent tenure . This assclown deserves jail time not only for being an incompetent manager but all the insider dealing he was doing as well.

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  13. Number6

    XScale

    Didn't Intel sell its ARM stuff to Marvell a while back?

  14. Ian Rogers
    WTF?

    Ocean Finance

    "and offer up to $500m in new senior notes to help finance the debt-reduction scheme"

    When individuals take out a loan to pay off another one it's stupid. When corporations do it it's sound business practice...

  15. Steve Foster

    @Ocean Finance

    If the interest rate on the new debt is lower than that on the old (which ought to be the case in the current economic climate), then it *is* sound practice (this holds true in the consumer space too).

    What is stupid is replacing one debt with another more expensive one (which is what the likes of Ocean Finance usually do to consumers).

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