bloggingbuyouts

Broadcom Corp. said Monday, Aug. 25, it would acquire microprocessor maker Advanced Micro Devices Inc.'s digital TV business for $192.8 million in cash to expand its offerings in the digital TV market.

Irvine, Calif.-based Broadcom intends to boost scale and its customer base with the deal for Sunnyvale, Calif.-based AMD's unit, according to a statement from the companies. They added the buyer plans to "offer a complete product line that covers all segments of the DTV market ranging from low-end value and mid-range quality to high-end interactive platforms and panel processors."

With the deal, chip developer Broadcom will ask 530 AMD employees and other staff that work in or in relation to its digital TV unit to join the company.

Continue reading at TechConfidential.com.

Galleon Group, a $7 billion hedge fund based in New York, has been buying millions of shares in Advanced Micro Devices (NYSE: AMD). Galleon is betting that AMD shares can climb back up from their current levels in the $12 dollar range, closer to the 52-week high of $23.

As Douglas McIntyre wrote recently on BloggingStocks, "the chips are still down" when it comes to AMD. While AMD's market share has climbed slightly, the chip war with Intel Corp. (NASDAQ: INTC) still promises to be painful as far as profits go, at least in the near future. AMD lost $360 million in the third quarter.

But maybe Galleon knows something we don't. According to the New York Post, Galleon recently hired Goldman Sachs partner Rick Sherlund, a computer industry analyst, to manage its computer investment portfolio. Sherlund must believe that things are improving for AMD and that a return to profitability is in the cards for AMD. Whatever the case, investors are reacting positively to the news, and AMD's shares are up over 3% so far in trading today.