Advanced Micro Devices Tuesday announced the completion of the sale of its Digital TV (DTV) processor business to Broadcom Corp. For some reason, the company had to slash the price of its business unit by $51 million.
Instead of originally announced $192.8, AMD sold its DTV biz for approximately $141.5 million in cash subject to certain escrows and adjustments pursuant to the terms of the definitive asset purchase agreement.
AMD’s DTV product line includes all Xilleon integrated DTV processors and complete turnkey reference designs, as well as NXT receiver ICs, the Theater 300 DTV processor, and a line of panel processors that perform advanced motion compensation, frame rate conversion and scaling.
AMD got its DTV business unit when it acquired ATI Technologies back in late 2006. Since that time, revenues of its consumer electronics divisions has been dropping and AMD even had to write down over $800 million of intangible assets recently due to lower than expected financial performance of the CE business unit.
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.
AMD claims that by leaving the DTV business it will be able to better concentrate on its core x86 microprocessors as well as graphics processors businesses.