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Broadcom Ends Up Paying Less for AMD Unit

Irvine-based chipmaker Broadcom Corp. completed its buy of an Advanced Micro Devices Inc. unit for $141.5 million, or about 25% less than expected.

The buy came in lower with a projected drop in fourth-quarter revenue for the former AMD unit, which is expected to see quarterly sales of $15 million to $20 million.

The news is mixed for Broadcom: It paid even less on what analysts already called a good deal, but it inherits a business where sales are slowing.

The unit makes chips for high-definition video, digital TV tuners and graphics. They include processors that handle digital signals in TVs, receivers that pick up broadcast signals and others that control how a picture is displayed.

Customers include Sony Corp. and Samsung Corp.

Broadcom may record a onetime charge for research and development expenses related to the acquisition in the fourth quarter. The amount, if any, hasn’t been determined.

Shares of Broadcom closed up about 8% on a market value of $9 billion.

The stock has been gaining for the past few days after Broadcom reported third-quarter results last week that beat Wall Street’s expectations and talked of reining in its costs.

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