Broadcom Acquires Sunext Design for Blu-ray Solutions

Broadcom has announced that they have acquired optical disc technology specialist Sunext Design in order to provide future single chip Blu-ray player and recorder solutions. In the past, Broadcom has specialized in providing back-end solutions to manufacturers. With this acquisition, they will have rights to advanced front-end solutions, allowing them to provide a total Blu-ray package to electronics manufacturers.

Dan Marotta, Senior Vice President and General Manager of Broadcom's Broadband Communications Group commented, "The technology that will win the market share battle for Blu-ray Disc players and recorders will be the one that provides the highest quality audio and video processing while integrating the most advanced front-end and back- end functions into a single low cost device. Sunext's technology and strong engineering team will enable Broadcom to integrate optical reader/writer capability into our industry leading Blu-ray Disc silicon solutions."

By providing a single path solution, Broadcom expects the cost of Blu-ray players and recorders to drop dramatically in the coming months, allowing manufacturers in turn to produce low cost players. Broadcom will pay up to $48M for the acquisition, pending certain milestones.