Advanced Micro Devices Inc. agreed to sell its digital-television business to Broadcom Corp. for $192.8 million as the chip maker moves to streamline itself as it battles Intel Corp. The deal, set to close by year's end, will bolster AMD's balance sheet and lower the amount of revenue the company needs to generate to break even, said President and Chief Executive Dirk Meyer. Broadcom said that combining AMD's digital-TV efforts with its own will allow the communication-chip maker to offer a complete line of products that covers the entire segment, from low to high end. The company has seen digital TV as a key growth area. Some 530 AMD employees will join Broadcom through the deal. Mr. Meyer became CEO of AMD last week with the challenge of returning the company to profitability after seven consecutive quarterly losses and transforming the way computers process graphics and information. The company's cost structure has been among the biggest worries for investors, causing AMD to burn through its cash.Wall Street Journal; August 26, 2008
