AMD Completes Sale of Digital TV Business to Broadcom

btarunr · Oct 28, 2008

AMD today announced completion of the sale of its Digital TV (DTV) processor business to Broadcom Corporation. AMD announced a definitive agreement to sell its DTV business on August 25 as part of its strategy to become leaner and more focused, while seeking to create a business model to deliver sustainable profitability and leadership in core x86 computing and graphics businesses.

In connection with the business sale, AMD received approximately $141.5 million in cash, subject to certain escrows and adjustments pursuant to the terms of the definitive asset purchase agreement.

View at TechPowerUp Main Site

suraswami · Oct 28, 2008

There goes one more arm just to keep the weak heart going.:shadedshu

so no hdtv wonders anymore? or is it something else?

jbunch07 · Oct 28, 2008

Maybe they can be more focused on GPUs, CPUs and chipsets now

Witch is what i think they meant by "more focused"

btarunr · Oct 28, 2008

suraswami said:
There goes one more arm just to keep the weak heart going.:shadedshu

But look... they got $140M, something I don't think the DTV division would have ever made for the company, while in-turn adding to the running costs, salaries, etc.

suraswami · Oct 28, 2008

btarunr said:
But look... they got $140M, something I don't think the DTV division would have ever made for the company, while in-turn adding to the running costs, salaries, etc.

yeah I understand, but bad to see that they need to keep selling just to survive. Hopefully they release good CPUs that will outperform Intel's.

btarunr · Oct 28, 2008

suraswami said:
yeah I understand, but bad to see that they need to keep selling just to survive. Hopefully they release good CPUs that will outperform Intel's.

They're not selling to survive, just disposing a poor-performing division. It's pretty normal for even companies that are profitable overall, to do such things. If a new management feels it can make better use of the resources and staff, so be it, let them have it.

aj28 · Oct 28, 2008

suraswami said:
yeah I understand, but bad to see that they need to keep selling just to survive. Hopefully they release good CPUs that will outperform Intel's.

It's more cost-cutting measures than anything else. Sort of like retail outlets closing down unprofitable stores (*cough*CCity*cough*) so they can improve stock, advertising, and overall investment in locations that are making the company money. It's interesting because all these divisions they're selling off are parts of AMD, but not part of the AMD we know and talk about on a daily basis. I mean, most of this stuff isn't even branded AMD equipment, so I don't consider it a huge loss to the consumer and enthusiast tech industries.

I do wonder though... Does this encompass their PC TV Tuner cards and All-In-Wonder lineup? I always liked them more than Pinnacle units, regardless of their total absence from the retail marketplace :wtf:

WarEagleAU · Oct 28, 2008

I Agree its a good move by them. Im sure Broadcom will continue with the TV Tuners though and incorporate ATI chips on them, which makes ATI money without a shit load of overhead.

Hayder_Master · Oct 29, 2008

more income , more develop

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AMD Completes Sale of Digital TV Business to Broadcom

btarunr

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