AMD is working on a brand new x86 CPU core

[Alby_da_Wolf]

fatslob-:O said:

Alby_da_Wolf said:

I can read it, and Intel reserves the right to allow AMD such things only if it obtains its explicit permission, otherwise, in case of such changes in AMD ownership, AMD will keep its cross-licensing rights only for "microprocessors for use in a Personal Computer". It limits AMD rights on those techs to CPUs and APUs to be used in desktop and portable PCs (as defined in section 1.5), it DOESN'T revoke them. So, in case of change of ownership, AMD would be prevented to make x86 CPUs to be used in tablets and phones or other devices using embedded processors. Not a terrible loss, as ARM, MIPS and PowerPC/POWER are already the undisputed leader architectures in those markets (with ARM being overwhelming on phones and tablets and MIPS and PowerPC/POWER more competitive in other markets).

6.3 Change of Control . In the event of a Change of Control of AMD, the definition of AMD Microprocessor as defined in Section 1.5 shall be limited to those devices that fell within Section 1.5 on the date of the Change of Control and shall further be limited to x86 AMD Microprocessors for use in a Personal Computer.

“ Change of Control ” shall mean:

(1) any Person or group of Persons (as the term “group” is interpreted pursuant to Rule 13d-5 under the Securities Exchange Act of 1934, as amended) (the “Acquiring Person”) acquires (i) beneficial ownership of capital stock of AMD entitling the holder(s) thereof to more than fifty percent (50%) of the voting power of the then outstanding capital stock of AMD with respect to the election of directors of AMD, or (ii) an interest sufficient to receive more than fifty percent (50%) of the profits or losses of AMD; or

(2) AMD enters into a merger, consolidation, reorganization or similar transaction (or series of related transactions) with any Person or group of Persons in which less than fifty percent (50%) of the voting power of the outstanding capital stock of AMD (if it is the surviving entity) or of the Acquiring Person (if it is the surviving entity) with respect to the election of directors following such transaction is held directly or indirectly by Persons who were shareholders of AMD immediately prior to such transaction (or series of transactions); or

(3) AMD sells to any Person(s) in one or more related transactions properties or assets representing all or substantially all of the properties and assets of AMD.

Section 1.5 is related to the term “ AMD Microprocessor ” - shall have the same meaning as the term “AMD Processor” in the New Patent Cross License. 

It makes no distinction between the different markets the processors are meant for and is only referencing AMD's x86 processors in general so if AMD even attempts to transfer 50% of the voting power to another entity they will really lose all rights to the patents in the cross licensing agreements. 

It actually would be a big loss for AMD to be not able to produce x86 processors in the mobile space as it has some fair profit margins compared to AMD losing money in the desktop space. 

MIPS is irrelevant and PowerPC is a total failure. 

I guess we read different things in that wording: it starts explicitly saying that in case of change of AMD ownership, the licensing will be further limited to AMD processors made for PCs, not totally revoked...
Section 1.5 is just about definitions, and they apply to the whole contract, but in Section 6.3 a distinction is introduced to clearly state that in case of change of ownership AMD from then on can use cross-licensed tech only in that explicitly named market, PC (that is clearly defined too in Section 1.5).

About your last points:
Yes MIPS and PowerPC are almost irrelevant on tablets and phones, that currently are the biggest user device markets, but they are still present in other embedded markets both for users and enterprises.
About phones and tablets, AMD can still make GPUs for them, and not only, it can go downstream instead of upstream in those markets and make, alone or in joint-ventures, ARM+Radeon-based APUs. Outside of PC market companies don't give a damn if Intel doesn't license them x86, actually they don't even ask for it. Actually, without AMD, Intel chances to expand the share of x86 architecture in the markets outside of PC decrease, and given that one-sided deal with AMD, it's very unlikely that other companies will want to take AMD's uncomfortable place in markets where such deals with Intel aren't needed at all, when POWER and ARM are licensed in a far fairer way (MIPS too, but despite not dead it's weaker than POWER and ARM, except in China, where it's still quite strong and liked).