[00:00.26]The world’s largest maker of microchips, Intel,
[00:03.09]is to pay its main rival, AMD,
[00:04.95]one and a quarter billion dollars
[00:06.92]to settle a long running anti-trust and patent dispute.
[00:09.89]In return, AMD will drop all its lawsuits against Intel.
[00:13.55]Mark Gregory reports.
[00:15.79]By reaching a settlement now,
[00:17.23]the two sides avoid uncertainty over the outcome of
[00:20.46]the trial and millions of dollars of legal costs.
[00:23.49]The deal is a particular relief to AMD’s investors.
[00:27.69]The company’s finance is being strained by
[00:30.10]the unequal battle with Intel.
[00:32.20]AMD shares rose nearly a third
[00:34.42]in value on news of the deal,
[00:36.85]but there are also advantages for Intel
[00:39.07]which’s facing multiple investigations
[00:41.67]into its business practices
[00:43.40]along with several lawsuits by regulators
[00:46.31]in the US, Europe and Asia.