Sunnyvale (CA) – AMD today announced that it has sold its digital TV business in a move the company announced to be pursuing about three months ago. Aimed to reduce operating cost, products including the Xilleon processors as well as Theater products are handed over to Broadcom in exchange of $192.8 million in cash.
According to an announcement released early today, the acquisition of AMD’s DTV business is expected to enable Broadcom to immediately scale its DTV business ”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.”
Broadcom will pay AMD $192.8 million in cash and record a not yet specified charge for “purchased in-process research and development expenses” related to the acquisition. The closing is expected to occur during Broadcom’s fourth quarter ending December 31, 2008.
As part of the transaction, which includes all Xilleon integrated DTV processors, NXT receiver ICs, the Theater 300 DTV processor and a line of panel processors that perform advanced motion compensation, frame rate conversion and scaling. 530 AMD employees “will be invited” to join Broadcom, which means that AMD will be able to shed further operation cost in a segment that was one of the highlights when AMD purchased ATI in 2006, but has been showing losses in recent quarters. The company’s DTV business was part of “all other” revenue sources (next to computing solutions and graphics), which brought a loss of $96 million in the second quarter of 2008 and $159 million in the first six months of the year. AMD did not break out the DTV share of this result.
“AMD is executing a strategic plan to transform the company, becoming leaner and more focused while seeking to create a business model to deliver sustainable profitability,” said Dirk Meyer, president and chief executive officer of AMD. “The sale of our DTV business is a key step in AMD’s transformation, helping to strengthen our balance sheet, lower our breakeven point, and hone our focus in order to take full advantage of our position as a leader in both microprocessors and graphics technology.”
According to an announcement released early today, the acquisition of AMD’s DTV business is expected to enable Broadcom to immediately scale its DTV business ”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.”
Broadcom will pay AMD $192.8 million in cash and record a not yet specified charge for “purchased in-process research and development expenses” related to the acquisition. The closing is expected to occur during Broadcom’s fourth quarter ending December 31, 2008.
As part of the transaction, which includes all Xilleon integrated DTV processors, NXT receiver ICs, the Theater 300 DTV processor and a line of panel processors that perform advanced motion compensation, frame rate conversion and scaling. 530 AMD employees “will be invited” to join Broadcom, which means that AMD will be able to shed further operation cost in a segment that was one of the highlights when AMD purchased ATI in 2006, but has been showing losses in recent quarters. The company’s DTV business was part of “all other” revenue sources (next to computing solutions and graphics), which brought a loss of $96 million in the second quarter of 2008 and $159 million in the first six months of the year. AMD did not break out the DTV share of this result.
“AMD is executing a strategic plan to transform the company, becoming leaner and more focused while seeking to create a business model to deliver sustainable profitability,” said Dirk Meyer, president and chief executive officer of AMD. “The sale of our DTV business is a key step in AMD’s transformation, helping to strengthen our balance sheet, lower our breakeven point, and hone our focus in order to take full advantage of our position as a leader in both microprocessors and graphics technology.”