Broadcom gets a discount on AMD's TV unit

The unit from AMD could strengthen Broadcom's own digital TV system business by expanding the tier-one customer base.

Broadcom on Tuesday said that it completed the acquisition of Advanced Micro Devices' digital TV chip business--at a discount to the original price.

On August 25, the two companies announced a price for the unit of $192.8 million. But Broadcom now expects that AMD's digital TV business will have fourth-quarter revenue of between $15 million and $20 million, lower than previously expected, the Irvine, Calif.-based company said.

Accordingly, the price has been slashed to $141.5 million, about a 27 percent reduction from the original price.

Broadcom had said in August that AMD's DTV unit would strengthen its own digital TV system business by expanding the tier-one customer base. Broadcom offers digital chips for TVs, including digital TV system-on-chip solutions.

AMD sold the unit to Broadcom to become " leaner and more focused " as it faced a string of quarterly losses and needed to create a "business model to deliver sustainable profitability and leadership in core x86 computing and graphics businesses," the company said.

About the author

Brooke Crothers writes about mobile computer systems, including laptops, tablets, smartphones: how they define the computing experience and the hardware that makes them tick. He has served as an editor at large at CNET News and a contributing reporter to The New York Times' Bits and Technology sections. His interest in things small began when living in Tokyo in a very small apartment for a very long time.

 

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