Broadcom to Acquire Digital TV Business from AMD
- Acquisition Expected to Bring Broadcom Scale, a Complete Product Line to Address All Segments of the Digital TV Market and Expand Tier One Customer Base -
IRVINE and SUNNYVALE, Calif. -- 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 AMD's digital TV (DTV) business.
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. 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.
In connection with the transaction, approximately 530 members of AMD's 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. 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.
"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 Vice President & General Manager of Broadcom's 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 AMD's 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 AMD's 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 Broadcom's 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).
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 industry's 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 Broadcom's core mission: Connecting everything®.
Broadcom is one of the world's 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.
Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at http://www.broadcom.com.
Advanced Micro Devices (NYSE: AMD) is a leading global provider of innovative processing solutions in the computing and graphics markets. AMD is dedicated to driving open innovation, choice and industry growth by delivering superior customer-centric solutions that empower consumers and businesses worldwide. For more information, visit http://www.amd.com.
Latest News Posts
- Is this the most cute watercooling component you've ever seen?
- Aussie telco Telstra signs up Ikea and 7-11 owners in cloud deal
- Facebook fugitive troll finds himself in prison
- Bethesda announces Wolfenstein: The Old Blood for May 5, 2015
- See Samuel L. Jackson kick ass as POTUS in 'Big Game'
- Noontec Zoro II HD Foldable Headphones Review
- AC Power
- MSI X99S-MPower (Intel X99) Motherboard Review
- Gigabyte Z97MX Gaming 5 - F5c BIOS
- Asrock z97 Extreme4 mic + pci-e x1 problem
- Phanteks Announces Enthoo EVOLV ITX Chassis
- SanDisk Unveils the World's Highest Capacity microSD Card
- SanDisk Announces iNAND 7132 e.MMC Storage with 1 Gbps Transfer Rates
- SanDisk Intros Two Smartphone-friendly Flash Drives
- SanDisk Intros First Memory Cards Designed for Dashcams