Thursday, December 20, 2012

Google Sells Motorola?s Home Division to ARRIS

Motorola-Google

A year ago, Google purchased Motorola Mobility for $12.5 billion. Since then, Motorola?s phone division has continued to put out devices seemingly as if it had never been purchased. However, many wondered what would happen to Motorola Home ? the division responsible for cable boxes and various other living-room centric products ? after the buyout was complete.

Today, we have the answer. Both parties officially announced that Motorola Home would be making its way to ARRIS? corporate umbrella, another cable-box provider and telephony provider, for $2.35 billion in cash and stock. According to the press release:

Under the terms of the agreement, upon closing of the transaction,?Google?will receive?$2.05 billion?in cash and approximately$300 million?in newly issued ARRIS shares, subject to certain adjustments provided for in the agreement, representing an approximately 15.7% ownership interest in ARRIS post-closing.

Acquiring Motorola Home will enhance ARRIS? ability to provide next-generation consumer video products and services, supporting a more comprehensive product offering while also accelerating its ability to deliver a comprehensive set of industry-leading new products for broadband to a wide spectrum of customers.? The transaction will increase ARRIS? patent portfolio and provide a license to a wide array of Motorola Mobility patents.

Breaking through the PR-speak shows that this acquisition was more of a patent grab, which is something that Motorola has plenty of. Beyond that, Motorola?s position in the cable-box industry should help to bolster that of ARRIS.

[ARRIS]

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Source: http://www.ifans.com/blog/65975/

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