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Problem isthe X86 license, which would be gone as it is valid for AMD and AMD only and not transmutable after a buyout or a merger (unless AMD is the buyer, not the bought one, of course). In other words, it would not only kill most of AMD apart from their ARM Server chips and Grapics cards, it would also forcefully end the production of the chips in the PS4 and Xbox ONE consoles as they are dependent on it's code in their architecture.

Unless Intel would get forced to open the license to everybody, of course. But even then it would take a long court action before this even would happen.

So no, I don't see it happen. And it's not the first time such rumours emerged, far from it.