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AMD offloads DTV business to Broadcom

by Scott Bicheno on 25 August 2008, 20:23


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The great sell-off commences

When AMD announced another quarter of heavy losses in mid July, it revealed two main measures to stop the rot. One was to replace CEO Hector Ruiz with his number two: Dirk Meyer. The other was to start selling off many of its assets, starting with the handheld and digital TV divisions.

A month or so later the first of these sales has been completed, with the announcement that the DTV division has been sold to one of the most likely purchasers: fabless semiconductor outfit Broadcom, for roughly $192.8 million in cash.

As well as providing a much needed cash injection for AMD, this seems to mark a strategic move by Broadcom in the DTV market, as stated in the press release: "This deal aims to enhance and strengthen Broadcom's innovative DTV system solution offerings while delivering the scale and focus needed to forge a market-leading DTV business."

"The acquisition of AMD's DTV business, which will become the core of Broadcom's DTV line of business, will enable us to significantly scale and accelerate the completion of our digital TV product portfolio while also expanding our tier one customer base and positions us to achieve leadership and long-term growth in this important market segment," said Daniel Marotta, Senior VP and GM of Broadcom's Broadband Communications Group.

Of course, $200 million is just a drop in the ocean for AMD, which about a billion dollars more than that last quarter, but it is, presumably, the first of a number of sell-offs, which will almost certainly include the handheld division and probably at least some of its fabs.


Press release: Broadcom to Acquire Digital TV Business from AMD


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