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Google Sells Piece of Motorola

The cash-and-stock deal is valued at about $2.35 billion
By Maureen O'Gara
Article Rating:
December 20, 2012 09:22 AM EST
Reads:
 2,721

Google is going to sell Motorola's set-top box business to the Arris Group, a cable equipment maker.

The cash-and-stock deal is valued at about $2.35 billion, which should repay Google part of the $12.5 billion it spent on MMI supposedly for its IP.

Google has been shopping the business, one of the biggest set-top box suppliers, for months.

It is supposed to get $2.05 billion in cash and roughly $300 million in Arris stock, a 15.7% position.

It estimates the deal will close in Q2.

Meanwhile, Google has been downsizing MMI.

Arris CEO Bob Stanzione expects to be compensated by "ever-expanding consumer demand for bandwidth that will continue to drive growth across cloud and network technologies." He figures to realize $100 million-$125 million in annual cost synergies and add significantly to his EPS the first year after closing.

Published December 20, 2012 – Reads 2,721
Copyright © 2012 SYS-CON Media, Inc. — All Rights Reserved.
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More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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