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.
