Intel-Digital deal could be worth $1.5b

The recent Intel-Digital deal is worth more than double the $700 million Intel paid its recent adversary for its chip manufacturing facilities, according to a report in this morning's Wall Street Journal.

The Journal claims that licensing fees and discounts may have made up to another $800 million for Digital, making the deal look a lot sweeter.

The story also revives an old chestnut: that Compaq may buy Digital. According to the story, Compaq offered $10 billion for Digital two years ago and an agreement that Compaq would not renew its bid is due to run out within months.

However, in the interim, Compaq agreed to purchase Tandem Computers for $3 billion, taking it firmly into the high-end server space where Digital is also a key player.

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