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.