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
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (1) comment


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
Upcoming Live Events
October 29, 2014, New York City
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
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
Like Us on Facebook
Twitter Feed