Broadcom and AT&T announced that they have entered into an agreement that would allow Broadcom to purchase AMD's digital TV business. Broadcom says it expects the purchase to enable it to immediately scale its DTV business in conjunction with existing products and offer a line of products covering the market from low-end to high-end offerings.

Broadcom says that about 530 employees formerly of AMDs dedicated DTV team will be included in the purchase and certain employees directly supporting this team are included as well. AMD's DTV line includes the Xilleon DTV processor and Theater 300 DTV Processor along with other processors for improving motion compensation and frame rate.

"The acquisition of AMD's DTV business, which will become the core of Broadcom's DTV line of business, will enable us to significantly scale and accelerate the completion of our digital TV product portfolio while also expanding our tier one customer base and positions us to achieve leadership and long-term growth in this important market segment," said Daniel Marotta, Senior Vice President & General Manager of Broadcom's Broadband Communications Group. "We believe our combined DTV team will be in an excellent position to grow and thrive in this burgeoning market by bringing best-in-class people, technology, solutions and support to our customers."

Via Broadcom