IRVINE, Calif., Oct 28, 2008 -- Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that it has completed the acquisition of AMD's (NYSE: AMD) digital TV (DTV) business. The acquisition is expected to enable Broadcom to immediately scale its DTV business, and, in conjunction with its existing products, 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.
On August 25, Broadcom announced a definitive agreement to acquire AMD's DTV business, noting that the transaction is expected 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. The acquisition also is intended to expand Broadcom's existing tier-one customer base, which includes top DTV brands worldwide.
Broadcom now anticipates that AMD's DTV business will have fourth quarter revenue between $15 and $20 million, lower than previously expected. Accordingly, the parties agreed to reduce the purchase price from $192.8 million to $141.5 million in cash (in each case, minus certain accrued employee-related amounts). The anticipated dilutive impact to EPS of $0.04 to $0.05 per share in 2009, with the combined DTV business approaching EPS neutrality in the fourth quarter of 2009, has not changed. A portion of the consideration payable to AMD was placed into escrow pursuant to the terms of the definitive asset purchase agreement. Broadcom may record a one-time charge for purchased in-process research and development expenses related to the acquisition in the fourth quarter of 2008. The amount of that charge, if any, has not yet been determined.
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 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 2,900 U.S. and 1,300 foreign patents, more than 7,600 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.
