What is a subsidiary?
Last week we spoke to Intel spokesman Chuck Mulloy, who gave us Intel's perspective on the matter of the splitting of AMD in two and how that affects the long-standing crosslicense agreement between the two.
This was prompted by the announcement by AMD in the SEC filing of its recent quarterly results that it had received a letter from Intel asking for a meeting to discuss whether The Foundry Company (TFC) qualifies as a subsidiary of AMD under the terms of that agreement. TFC is the provisional name for the company that will be formed from the spin-off of AMD's manufacturing operations.
At the end of the piece we wrote an update that AMD spokesman Drew Prairie contacted us after we'd published the piece to confirm that AMD had accepted Intel's request for a meeting.
In the SEC filing, AMD made the following statement: "The Company strongly believes that The Foundry Company qualifies as a "Subsidiary" under the Cross-Licenses, that the creation of The Foundry Company is not a breach of the provisions of either of the Cross-Licenses and that neither the transaction establishing The Foundry Company nor the Company's acquisition of ATI constituted a change of control of the Company under the Cross-Licenses."