Broadcom to Acquire Digital TV Business from AMD

IRVINE, Calif. & SUNNYVALE, Calif.—(BUSINESS WIRE)—August 25, 2008— Broadcom Corporation (NASDAQ: BRCM), a global leader in semiconductors for wired and wireless communications, and AMD (NYSE: AMD) today announced that the companies have entered into a definitive agreement for Broadcom to acquire AMDs digital TV (DTV) business.

The acquisition of AMDs 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 Broadcoms existing tier one customer base, which includes the top DTV brands worldwide. This deal aims to enhance and strengthen Broadcoms innovative DTV system solution offerings while delivering the scale and focus needed to forge a market-leading DTV business.

In connection with the transaction, approximately 530 members of AMDs dedicated DTV team, in addition to certain employees directly supporting this team, located in six primary design centers around the world, will be invited to join Broadcom. AMDs 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.

The acquisition of AMDs DTV business, which will become the core of Broadcoms 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 Vice President & General Manager of Broadcoms Broadband Communications Group. We believe our combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers.

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, said Dirk Meyer, President and Chief Executive Officer of AMD. The sale of our DTV business is a key step in AMDs transformation, helping to strengthen our balance sheet, lower our breakeven point, and hone our focus in order to take full advantage of our position as a leader in both microprocessors and graphics technology. Broadcom will be a great fit for our talented DTV employees and the DTV products they have created.

In connection with the acquisition, Broadcom will pay approximately $192.8 million in cash in exchange for AMDs DTV assets. A portion of the consideration payable to AMD will be placed into escrow pursuant to the terms of the definitive asset purchase agreement. The board of directors of each company has approved the transaction and shareholder/stockholder approval of the transaction is not required by either company. The closing, which is targeted to occur during Broadcoms fourth quarter ending December 31, 2008, remains subject to customary closing conditions and review by relevant regulatory organizations. Broadcom 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.

Conference Call Information

Broadcom will conduct a conference call with analysts and investors today at 8:30 a.m. Eastern Time (5:30 a.m. Pacific Time). The company will broadcast the conference call via webcast over the Internet and will post its presentation material on the Investors section of the Broadcom website at http://www.broadcom.com/investors. To listen to the webcast, please dial (847) 619-6368 or visit the Investors section of the Broadcom website. The webcast will be recorded and available for replay until 12:59 a.m. Eastern Time, Tuesday, September 9, 2008 (9:59 p.m. Pacific Time, Monday, September 8, 2008).

About Broadcom

Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom® products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. Broadcom provides the industrys broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support Broadcoms core mission: Connecting everything®.

Broadcom is one of the worlds largest fabless semiconductor companies, with 2007 revenue of $3.78 billion, and holds over 2,800 U.S. and 1,200 foreign patents, more than 7,300 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.

1 | 2 | 3  Next Page »



Review Article Be the first to review this article
Featured Video
Editorial
More Editorial  
Latest Blog Posts
Bob Smith, Executive DirectorBridging the Frontier
by Bob Smith, Executive Director
Breaking Down Chip Design Functional Verification with Breker’s Adnan Hamid
Anupam BakshiAgnisys Automation Review
by Anupam Bakshi
Welcome Back to DAC – in Person – in San Francisco
Vincent ThibautArteris IP Blog
by Vincent Thibaut
Why Automate Traceability?
Jobs
Senior Staff Field Application Engineer for Global Foundaries at Santa Clara, California
Sr Engineer - RF/mmWave IC Design for Global Foundaries at Santa Clara, California
NAND Hardware Engineer for Apple Inc at Cupertino, California
Circuit Design & Layout Simulation Engineer - Co-Op (Spring 2021) for Global Foundaries at Santa Clara, California
Senior HID Sensor Algorithm Architect for Apple Inc at Cupertino, California
Upcoming Events
67th Annual IEEE International Electron Devices Meeting at Hilton San Francisco Union Square hotel San Francisco - Dec 11 - 15, 2021
67th Annual International Electron Devices Meeting at Hilton San Francisco Union Square Hotel San Francisco, CA - Dec 13 - 15, 2021
DVCon India 2021 at India - Dec 14 - 16, 2021
SEMICON Japan 2021 Hybrid at Tokyo Big Sight / Online Tokyo Japan - Dec 15 - 17, 2021



© 2021 Internet Business Systems, Inc.
670 Aberdeen Way, Milpitas, CA 95035
+1 (408) 882-6554 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy PolicyAdvertise