Light Reading
2:25 PM If Google doesn't get what it wants for Motorola's cable unit, it might reset the auction and try to sell off the parts

Does Google Have a Plan B?

Jeff Baumgartner
The Bauminator
Jeff Baumgartner
12/7/2012
50%
50%

2:25 PM -- As Google (Nasdaq: GOOG)'s auction for Motorola Mobility LLC 's cable unit reportedly winds down, The Wall Street Journal notes that a deal could fetch between $1.5 billion and $2.5 billion. (See Google Sets Deadline for Motorola Home Bids .)

Google, we've been told by people familiar with the process, did not get as much interest as it wanted from suitors that are willing to buy the whole Moto unit, which makes cable set-tops, cable modems, edge QAMs and other cable access network gear.

With that in mind, bids are expected to come in at the lower part of the range. "It has to be sub-$2 billion at the moment," says an industry source who has been tracking the progress of the sale process. (Motorola isn't commenting and Google hasn't responded.)

Will that be enough for Google to do a deal? Maybe not. As the Journal noted, Google could extend that deadline. A source familiar with the process gives Google a 50/50 shot at securing a buyer before the end of the year.

But if it goes beyond that, Google, I'm told, could consider pulling the whole thing back and instead look to break up Motorola Home and sell off its different piece-parts. That would complicate things, but it would likewise expand the bidding to many more companies and make the auction more competitive. Google might be willing to do it if it believes it can get a better price for Motorola's individual parts that it can by selling the whole enchilada to one bidder.

That would put things off until 2013, but maybe that's not a bad thing. Google could use that time to resolve its pending litigation with TiVo Inc. (Nasdaq: TIVO), which is suing Motorola and believes it deserves "billions of dollars" in damages. That of course does not mean TiVo would get billions if it won, but it could end up being more than the $250 million TiVo's getting from its settlement wtih Verizon Communications Inc. (NYSE: VZ). (See Verizon to Pay TiVo $250M to Settle DVR Fight .)

And the prospect of a more damaging lawsuit could give bidders reason to pause, and likewise give Google yet another reason to do the same.

— Jeff Baumgartner, Site Editor, Light Reading Cable

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:16 AM
re: Does Google Have a Plan B?


Still asking around but so far i have not heard that Google has offered to indemify bidders from the TiVo litigation as part of a deal. I'd need a lawyer to weigh in if that's even a legal possibility.  Even if Google kept all the IP, i'm not sure now that would work if this goes to a trial and an injunction resuts..It would seem that whatever company ended up with the Mot set-top assets would still be prevented from shipping DVRs. JB

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:15 AM
re: Does Google Have a Plan B?


And you might have also read that Pace confirmed  today (Dec. 10) that it put in a bid for Motorola Home.  Got a story on the way that spells out a hard number, but Google, I'm told, will help a buyer secure a sizable loan to pull off this deal.  But good of you to point out that Pace is a friend of TiVo, so I'm also curious to know how that might factor into such a deal. JB


 

More Blogs from The Bauminator
Don't expect anything more to pop for a while, but one analyst sees John Malone & Co. as the 'logical, ultimate acquirer of Ziggo' if the price is right
Cable operators will need to free up at least 24MHz of spectrum for Docsis 3.1. But why is that the magic number?
Liberty Media's rumored plan to snag a 25% stake in Charter for $2.5B could aid the MSO's M&A strategy
Top US cable operators lost 1.41 million video subs in 2012, but the bleeding continues to show signs of slowing in a saturated pay-TV market
Aereo streams its 'no cable required' tagline into the video world. Will consumers tune in to the message?
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With YuLiao

10|30|14   |   6:27   |   (0) comments


Yu Liao, chairman of the Chinese Association for Renewable Energy in Germany, discusses the role that ICT solutions play in helping to grow renewable energy resources in Germany.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview

10|30|14   |   2:54   |   (0) comments


Sifang has been working with Huawei on several projects. JingTao Wu, Assistant President of Beijing Sifang Automation Co. Ltd., believes that the cooperation with Huawei can facilitate Sifang's process of internationalization.
LRTV Huawei Video Resource Center
A Better Connected Smart Grid: Powering Laos

10|30|14   |   5:38   |   (0) comments


Representatives of Electricite Du Laos (EDL), a state-owned corporation, discuss the importance of ICT solutions in serving their country's energy needs.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Junwei Lu

10|30|14   |   4:50   |   (0) comments


Professor Junwei Lu of Griffith University Australia describes his work with micro grid technology and the future of the power industry.
LRTV Documentaries
The Next-Gen Network Disconnect

10|29|14   |   01:23   |   (2) comments


There's a lot of talk about making networks more simple with SDN, NFV and next-gen broadband technology – but what about the complexity of introducing such capabilities?
LRTV Custom TV
Grow Your VPN Service Revenue

10|27|14   |   4:00   |   (0) comments


Watch how CSP product managers can better differentiate and maximize the value of their Internet, VPN and cloud services for business services customers, by adding premium application performance visibility to their data services.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed