Broadcom acquires AMD's digital television business for $192.8 million in cash

26 August 2008

Advanced Micro Devices Inc. (AMD) has agreed to sell its digital-television business to Broadcom Corp. for $192.8 million as the struggling chipmaker moves to streamline itself as it battle chip giant Intel Corp. The deal is expected to close in the fourth quarter of the current fiscal.

The acquisition of AMD's DTV business is expected to enable Broadcom to immediately scale its DTV business, and, in conjunction with its existing products, to offer a complete product line that covers all segments of the DTV market ranging from low-end value and mid-range quality to high-end interactive platforms and panel processors.

It is also expected to expand Broadcom's existing tier one customer base, which includes the top DTV brands worldwide. This deal aims to enhance and strengthen Broadcom's innovative DTV system solution offerings while delivering the scale and focus needed to forge a market-leading DTV business.

Daniel Marotta, Senior Vice President & General Manager of Broadcom's Broadband Communications Group, said, ''The acquisition of AMD's DTV business, which will become the core of Broadcom's DTV line of business, will enable us to significantly scale and accelerate the completion of our digital TV product portfolio while also expanding our tier one customer base and positions us to achieve leadership and long-term growth in this important market segment.''

In connection with the transaction, approximately 530 members of AMD's dedicated DTV team, in addition to certain employees directly supporting this team, located in six primary design centers around the world, will be invited to join Broadcom.

Marotta said that he believed ''the combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers."