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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.

Brooke Crothers Former CNET contributor
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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Brooke Crothers

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.