The Intel-AMD Settlement: A Play-by-Play

It took a mediator—and a trip to Maui—to break the biggest logjam in landmark settlement talks between Intel and Advanced Micro Devices. Before arriving at the agreement that ended years of acrimony and legal wrangling between the world's largest makers of computer chips, representatives of each needed to answer one fundamental question: How much money would change hands?

The financial settlement was hammered out very late in more than a half-year of negotiations that culminated in a Nov. 12 announcement that Intel (INTC) would pay $1.25 billion to resolve long-standing antitrust allegations by AMD (AMD). Several people close to both sides gave BusinessWeek a play-by-play outline of the dramatic and sometimes tense talks dating to April 2009.