Broadcom To Acquire AMD’s Digital TV Unit

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Broadcom, a key supplier of semiconductors used in cable set-tops, modems and other devices, will acquire AMD's digital TV business for $192.8 million in cash.

Through the deal, Broadcom said Monday it can immediately scale its DTV business, to offer a complete product line that covers all segments of the digital television market ranging from low-end value and midrange quality to high-end interactive platforms and panel processors.

“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,” Daniel Marotta, senior vice president and general manager of Broadcom's Broadband Communications Group, said in announcing the acquisition.

About 530 employees in AMD's DTV unit, plus others directly supporting the group, located in six primary design centers around the world, will be “invited to join Broadcom,” the companies said.

AMD's DTV product line includes Xilleon integrated DTV processors and complete turnkey reference designs, as well as NXT receiver integrated circuits, the Theater 300 DTV processor, and a line of panel processors that perform advanced motion compensation, frame rate conversion and scaling.

AMD is selling its digital TV chip business to become "leaner and more focused while seeking to create a business model to deliver sustainable profitability," president and CEO Dirk Meyer said in a statement.

The deal is expected to close during the fourth quarter, pending usual closing conditions and regulatory review. The companies said their boards have approved the transaction, which does not require shareholder approval.

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