Home › News › Industry News
AMD completes TV unit sale to Broadcom at lower price
AMD has completed the sale of its digital television technology unit to Broadcom for $141.5 million in cash, about 27 percent less than the two companies originally agreed upon. The parties reportedly agreed to reduce the transaction price from the $192.8 million announced in August because of new, lower estimates for the unit's business.
Broadcom says it now anticipates that AMD's DTV business will have fourth quarter revenue of between $15 and $20 million, lower than previously expected. Unsurprisingly, investors are not at all pleased about the $51 million price reduction, and this morning sent AMD’s stock down 18 cents, or 6.1%, to $2.76. Nevertheless, the sale is yet another step in the right direction for AMD as it strives to slim down and regain profitability.
Broadcom says it now anticipates that AMD's DTV business will have fourth quarter revenue of between $15 and $20 million, lower than previously expected. Unsurprisingly, investors are not at all pleased about the $51 million price reduction, and this morning sent AMD’s stock down 18 cents, or 6.1%, to $2.76. Nevertheless, the sale is yet another step in the right direction for AMD as it strives to slim down and regain profitability.
Related Stories
Most Popular
| Trending | Featured |
-
iOS 5.1.1 untethered jailbreak tool released, supports 4S, iPad 3
-
After five days, Facebook ranks as worst IPO flop of the decade
-
Rumor: Windows 8 RC will launch June 1, will ship with Adobe Flash
-
Rumor: AMD "Piledriver" FX CPU production to begin Q3 2012
-
Diablo III becomes the fastest-selling PC game in history
Editors' Mouse Picks
Subscribe to TechSpot
Get free exclusive content, learn about new features and tech breaking news.