We have been suggesting that this was going to happen for some time. AMD finally unloaded the digital TV business as part of an effort to move the underperforming unit to help stop the bleeding at AMD.

Broadcom is the winner, according to the announcement that we have heard today. Broadcom will also get 530 ATI employees across six design centers worldwide and they will be offered Broadcom jobs if they accept.

Broadcom will also get ownership of the Xilleon integrated processor technology, NXT receivers, Theater 300 series DTV processors, and panel processors as part of their $192.8 million cash buy out. The transaction is said to be on track to close during the fourth quarter.

The purchase is a good move for Broadcom and it gives them quite a line up and product selection to sell in all market spaces. We can’t help but wonder if the decision to move this business segment will be the right decision for AMD in the end.

While there was a need to raise cash to help stem the bleeding, this was a growth segment that has potential for the future and was a money maker under ATI. The best news is that the employees will at least be offered jobs with Broadcom, which is good news in this tough economy.