From X-bit Labs: In a bid to ease its financial situation and also to concentrate on its core businesses, Advanced Micro Devices decided to sell off its digital television (DTV) business to Broadcom Corp. This will bring a lot of benefits to Broadcom and will essentially cut-off AMD’s ability to compete in the consumer electronics (CE) space.
Broadcom will pay approximately $192.8 million in cash in exchange for AMD’s DTV assets. A portion of the consideration payable to AMD will be placed into escrow pursuant to the terms of the definitive asset purchase agreement. In connection with the transaction, approximately 530 members of AMD’s dedicated DTV team, in addition to certain employees directly supporting this team, located in six primary design centers around the world, will be invited to join Broadcom.
The acquisition of AMD’s DTV business is expected to enable Broadcom to immediately scale its DTV business, and, in conjunction with its existing products, to 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. The acquisition also is intended to expand Broadcom’s existing tier one customer base, which includes the top DTV brands worldwide. This deal aims to enhance and strengthen Broadcom’s innovative DTV system solution offerings while delivering the scale and focus needed to forge a market-leading DTV business.
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