AMD completes TV unit sale to Broadcom at lower priceBy Jose Vilches
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.