Broadcom buys AMD DTV business for $192 million

Posted on Monday, August 25 2008 @ 21:28 CEST by Thomas De Maesschalck

Broadcom announced it will acquire AMD's digital television business for $192.8 million in cash. AMD acquired this unit in 2006 when it bought ATI for a total of approx. $5.4 billion and about six weeks ago the chip maker took a $880 million writedown on the value of ATI's handheld and digital television units.

Broadcom will use AMD's DTV unit to broaden its own production portfolio.

The board of directors of each company approved the deal and the transaction does not require approval by shareholders of either company. The deal does require regulatory approval and is expected to close in the fourth quarter.

Broadcom said it may record a one-time charge for purchased in-process research and development expenses related to the acquisition in the quarter in which the transaction closes. The amount of that charge, if any, has not yet been determined.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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