After writing down substantial sums on its $5.4 billion purchase of ATI back in 2006, AMD is beginning to divest itself of some of the assets of that sale, announcing today that it has struck a deal with Broadcom to buy all AMD’s digital television business and assets for $192.8 million in cash. The announcement follows AMD writing down another $880 million on its ATI acquisition, Hector Ruiz stepping down as CEO, and announcing earlier this year it would be cutting 10 percent of its workforce.
Broadcom hopes to use AMD’s DTV assets to scale up its own digital television business and offer a complete product line that covers the entire digital television world, from low-end to high-end interactive platforms and panel processors. AMD makes the Xilleon and Theater 300 integrated DTV processors, along with the NXT receiver IC s and a series of panel processors that perform tasks like scaling and frame rate conversion.
“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 AMD CEO and president Dirk Meyer, in a statement. “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.”
Under the deal, about 530 AMD employees will have the opportunity to join Broadcom; the companies expect the deal to close by the end of the year.
