AMD divests digital TV business to Broadcom for $141.5 million in cash

29 October 2008

Semiconductor makers AMD and Broadcom have announced the completion of their deal under which AMD has divsted its Digital TV (DTV) processor business to Broadcom Corporation for $142.5 million in an all-cash deal subject to certain escrows and adjustments as per the terms of its agreement. 

AMD, which has been planning to refocus its business model to in the area of its core competency of the core x86 computing and graphics businesses, had announced on 25 August that it had signed a definitive agreement to sell its DTV busines to Broadcom.

The acquisition is expected to enable Broadcom to immediately scale its DTV business, and, in conjunction with its existing products, 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.

While announcing the agrement with AMD, Broadcom had said, the transaction was expected to enhance and strengthen Broadcom's DTV system solution offerings while delivering the scale and focus needed to forge a market-leading DTV business.

In its quest to provide voice, video, data and multimedia to and throughout the home, the office and the mobile environment, Broadcom provides the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices.

Through this acquisition Broadcom also intends to expand its existing tier-one customer base, which includes top DTV brands worldwide.