Broadcom Picks Up AMD's Digital TV Business
When AMD announced its second quarter results last month, it also disclosed it was exiting the digital TV market. Today AMD announced a deal that enables Broadcom to buy the business unit for $192.8 million. The digital TV unit was part of the consumer electronics piece AMD picked up when it purchased ATI in 2006. The unit had been underperforming and AMD has been looking for ways to stem its losses associated with the ATI buyout. Shedding the digital TV unit will allow AMD to focus more on it core processor line of business. The deal also helps AMD with an infusion of cash while allowing it to reduce expenses for headcount and R&D. The move allows Broadcom to strengthen is digital TV lineup and both companies expect to finalize the deal some time in the fourth quarter.