Google sells Motorola Home

Google logoGoogle announced on Wednesday that it has sold the Motorola Home business it acquired earlier this year to the Arris Group for a sum of $2.35 billion in cash and stock. Motorola Home produces set top boxes that are sold to cable providers who then lease them out to end users. Google has been shopping around the Home side of Motorola for quite some time, with Arris and Pace Plc both considered to be front-runners for the purchase. As per the terms of the agreement, Google will receive about $2.05 billion in cash and $300 million in Arris common shares, giving Google an approximate ownership of 15.7 percent in the company. In addition to obtaining ownership of Motorola Home, Arris will also gain access to license Motorola Mobility patents. Earlier estimates had pegged Google's earnings from a sale of Motorola Home to be between $1.5 billion and $2.5 billion.

Google announced on Wednesday that it has sold the Motorola Home business it acquired earlier this year to the Arris Group for a sum of $2.35 billion in cash and stock. Motorola Home produces set top boxes that are sold to cable providers who then lease them out to end users. Google has been shopping around the Home side of Motorola for quite some time, with Arris and Pace Plc both considered to be front-runners for the purchase. As per the terms of the agreement, Google will receive about $2.05 billion in cash and $300 million in Arris common shares, giving Google an approximate ownership of 15.7 percent in the company. In addition to obtaining ownership of Motorola Home, Arris will also gain access to license Motorola Mobility patents. Earlier estimates had pegged Google's earnings from a sale of Motorola Home to be between $1.5 billion and $2.5 billion.

Arris will likely use this acquisition of Motorola Home to expand its current services of providing back-end telephony and networking equipment to cable providers. "The industry faces its biggest technology transformation, and together ARRIS and Motorola will be able to accelerate related innovations such as the introduction of the IP Connected Home environments that service providers need and that their consumers crave," noted Dennis Woodside, current CEO of Motorola Mobility.

Interestingly enough, Motorola Home is a more profitable business than its mobile device division, but it's apparent that Google wanted no part of the home cable box business. It had been rumored that Google was having trouble offloading the company, and that it was even willing to finance part of the purchase to make it more enticing to prospective buyers. With today's announcement, it doesn't look like the company will have to do that. The deal is expected to close in the second quarter of 2013, pending regulatory agreements.

Source: The Verge

Tags: Google, Motorola

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Consumer group recommends iPhone 8 over anniversary model
 
LTE connections wherever you go and instant waking should come to regular PCs, too
 
That fiction is slowly becoming a reality
 
The Snapdragon 845 octa-core SoC includes the Snapdragon X20 LTE modem
 
Human moderators can help make YouTube a safer place for everyone
 
Google says Progressive Web Apps are the future of app-like webpages
 
All 2018 models to sport the 'notch'
 
The biggest exchange in South Korea, where the BTC/KRW pair is at $14,700 now
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
24252627282930
31      




Poll

Do you use microSD card with your phone?
or leave your own version in comments (4)