PayOff
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Intel shells out $1.25 billion to settle all AMD litigation
Intel sure sells a lot of chips, but man -- it sure blows a lot of that profit on lawyers. Just months after it got nailed with a $1.45 billion fine from the EU in an AMD antitrust case, nearly two years after AMD hit Intel with another antitrust probe and nearly 1.5 years after the FTC sparked up an investigation of its own, Intel has finally decided to pony up in order to rid itself of one of those back-riding monkeys. In an admittedly brief joint announcement released simultaneously by both firms today, Intel has agreed to cough up a whopping $1.25 billion in order to settle "all antitrust and IP disputes" with AMD. In fact, the pair went so far as to say the following: "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." Aside from AMD's coffers filling up with cash, the agreement also gives both firms patent rights from a new 5-year cross license agreement. Of course, we're betting that this isn't the end of this exceptionally bitter rivalry, and we highly doubt Intel wrote a check this large while grinning from ear-to-ear. That said, we're eager to see what AMD does with its newfound cheddar, and if we had our druthers, we'd sit back and watch it invest heavily into beating Intel to the punch with its next few platforms.
Warner's $400 mil payoff rumor rides again
Some rumors never die, and this one we heard even before the official Warner press release was issued. Now that the format war is officially over, newspapers and magazines everywhere are looking back on the events preceding Toshiba's announcement. While no one really knows why each studio made its decision, The Globe and Mail cites "analysts" who think the payoff was a factor. Well, we asked Warner point blank about the payoff rumor and Kevin Tsujihara, president, Warner Bros. Home Entertainment Group said that it "was not a bidding war" and that it really came down to Q4 sales. This answer leaves us with the impression that while some money probably changed hands, the real reason why Warner went Blu was because during all of 2007 the Blu-ray versions of Warner's titles always outsold the HD DVD. The bottom line is that regardless of any single payoff, since Warner owns most of the home media market, it had the most to lose if it waited too long to chose a format. [Disclosure: Engadget's parent company's parent company is Time Warner, which also owns Warner Bros.]
