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AMD offloads TV chip unit on Broadcom for $193m

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As AMD struggles to gain altitude against Intel, the distant second rival chip maker is tossing excess weight where it can. Today, AMD said it intends to sell its digital television business to Broadcom for $192.8m cash.

AMD's chief Dirk Meyer said the sale will help the company focus on its primary market of PC processors.

"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 Meyer.

The TV unit includes AMD's Xilleon and Theater 300 integrated processor range, and NXT receiver integrated circuits. It will become "the core of Broadcom's DTV line of business," according to Daniel Marotta, veep of Broadcom's Broadband Communications Group.

The group's 530 employees will be invited to join Broadcom.

Only last week, Intel introduced its own chip for TV set-top boxes: the Media Processor CE 3100 (previously code-named "Canmore"). The processor is expected to ship to device makers as soon as next month.

In July, AMD announced it had lost $1.9bn during the second quarter and dumped Hector Ruiz from its CEO spot. He was replaced with Meyer, who was the company's President and COO. A few months earlier, AMD announced a plan to cut 10 per cent of its workforce over the next two quarters.

Broadcom's acquisition is expected to close during its fourth quarter ending December 31. Both boards of directors have approved the transaction, and shareholder approval is not necessary for the deal, the companies said. ®

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