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Thursday, November 12, 2009 1:24:32 PM
It does surprise me a bit that AMD is smart enough to take the deal with all the emotional jihad that AMD had invested. However, Dirk Meyer represents a new management and the old management is gone.
The $1.25 billion buys AMD another couple years of life. AMD can also freely pursue its foundry business model using GloFo or probably anyone else.
GloFo will not have an X86 license that it can spread to the world, something that would have resulted if GF was a fake subsidiary under the AMD license. This is a big win for Intel and it was done without litigation.
Don't worry about AMD 5 to 10 years down the road. AMD will not then exist in its present form if at all. How did Netscape do after the Microsoft settlement? AMD may be around as a niche graphics chip house but it will have no more significance in the X86 business than Via.
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