AMD closes deal with Broadcom, gets $142M


— 12:39 PM on October 28, 2008

A couple of months ago, AMD announced that it had struck a deal to sell its digital TV business to Broadcom. The transaction would close in the fourth quarter, the two companies said, and Broadcom would end up paying about $192.8 million in cash.

AMD has now put out a press release to say the transaction has closed as scheduled. The chipmaker is walking away with roughly $141.5 million in cash, a sum that's "subject to certain escrows and adjustments pursuant to the terms of the definitive asset purchase agreement" (whatever that means).

Going by what the two firms said in August, 530 staffers from AMD's six digital TV design centers around the globe should have received invitations to join Broadcom. And of course, Broadcom should now have ownership of AMD's Xilleon integrated digital TV processors, NXT receivers, Theater 300 digital TV processors, and panel processors with image enhancement features.

The sale came as part of AMD's initiative to focus on its core businesses—processors and graphics—in order to remain profitable. AMD posted its first operational profit in two years last quarter, so this restructuring might already be bearing fruit.

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