Broadcom to Acquire Digital TV Business From AMD
Broadcom hopes acquisition will help company expand its digital TV capabilities.
The acquisition, still subject to approval, is expected to be finalized by the end of 2008.
Broadcom will also take on about 530 AMD employees, most of who are engineers.
Daniel Marotta, senior VP and GM of Broadcom’s broadband communications group, says Broadcom will take over AMD’s production of a chip that “connects it all — the panel where the picture comes out, the sound, the power and all those plugs in the back.”
Broadcom, a semiconductor manufacturer, is looking to expand its digital TV capabilities to display personal photographs, play music from a digital collection and view Internet content.
Broadcom, which has acquired more than 30 companies since 1999, expects this acquisition to cut into its earnings by 4 cents to 5 cents a share in 2009.
AMD, proponent of AMD Live! Media Center technology, released this statement:
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. The sale of our DTV business is a key step in AMD’s transformation, helping to strengthen our balance sheet, lower our break-even point, and hone our focus in order to take full advantage of our position as a leader in both microprocessors and graphics technology.
Broadcom’s stock fell 4.6 percent to $26.17 on Monday. AMD shares increased 2.1 percent to $5.93.
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Steve Crowe has been writing about technology since 2008. He lives in Belchertown, MA with his wife and daughter. Have a suggestion or a topic you want to read more about? Email Steve at firstname.lastname@example.org
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