& cplSiteName &

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        ADD A COMMENT
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?
From The Founder
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Huawei Video Resource Center
Turkcell Challenges Turkey's Current TV Market

3|29|17   |     |   (0) comments


Baris Zavaroglu, TV and rntertainment business director of Turkcell, explains Turkcell's strategy in elevating the small and uncertain TV market in Turkey.
LRTV Huawei Video Resource Center
Altibox’s Infrastructure Synergy Strategy Reduces Deployment Costs

3|29|17   |     |   (0) comments


Thomas Skjelbred, CEO of Altibox, on how to improve efficiency and reduce deployment coast through infrastructure synergy in Norway.
LRTV Huawei Video Resource Center
Ismail Butun on the Changing Role of Turkcell

3|29|17   |     |   (0) comments


Ismail Butun, chief marketing officer of Turkcell, explains the importance of video and mobile services for the future of the company.
LRTV Huawei Video Resource Center
IDC's Emir Halilovic on Trends of Cloudification

3|29|17   |     |   (0) comments


Emir Halilovic of IDC CEMA discusses the future and direction of cloudification. Also, the all-cloud approach taken by Huawei and others in the industry.
LRTV Custom TV
How Intel Is Powering the 5G Era

3|29|17   |     |   (0) comments


Light Reading tours a series of 5G "super demos" so see how Intel envisions the 5G-connected future. We take a look at a prototype connected BMW, a light pole with environmental sensors that provides 5G wireless to a smart home and a fully untethered virtual reality experience.
LRTV Custom TV
Source Photonics CEO Doug Wright Talks About the Future of Source Photonics

3|29|17   |     |   (0) comments


Source Photonics' CEO, Doug Wright, talks to Light Reading about how the company is continuously investing in its operations to meet not only its customers' current technology demands but also to deliver their next-generation technology needs.
LRTV Custom TV
Live Demo: DevOps in Service Chains & 5G Network Slices PoC

3|29|17   |     |   (0) comments


Executives from PoC collaborating companies – Patrick Waldemar, VP and Head of Technology at Telenor Research, John Healy, VP of the Datacenter Network Solutions Group at Intel, Vincent Spinelli, SVP of Global Sales and Marketing at RIFT.io, Mats Eriksson, CEO and co-founder of Arctos Labs, and Mats Nordlund, CEO and co-founder of Netrounds – review ...
LRTV Documentaries
The Year of Fat & Skinny Bundles

3|29|17   |   21:06   |   (0) comments


In this fireside chat, Roku's Andrew Ferrone predicts that 2017 will be the year of multichannel OTT video bundles and spells out other trends in the OTT and pay-TV markets.
LRTV Huawei Video Resource Center
BBWF 2016: Orange Poland's Next-Gen Central Office

3|28|17   |     |   (0) comments


Introduction to Orange Poland's legacy next-generation central office solution.
LRTV Custom TV
Viavi at OFC 2017

3|28|17   |   4:15   |   (0) comments


Light Reading's Editor-in-Chief Craig Matsumoto reports from the Viavi booth at OFC and gets an update on the 400G testing market from Tom Fawcett, VP and GM of LAB & Production. At this year's event, Viavi won three awards from Lightwave magazine and showcased an interoperability demo with Ethernet Alliance and Finisar.
LRTV Custom TV
Connecting the Entire Home With DOCSIS 3.1

3|28|17   |   3:58:   |   (0) comments


Hitron Technologies had the first cable modem certified for DOCSIS 3.1 and already has over 120,000 units in the field. Greg Fisher, CTO of Hitron, provides an update on his company's rollout of new gateways and why he thinks DOCSIS 3.1 will continue to drive value for operators into 2017 and beyond.
LRTV Interviews
Amazon Prime's Hand of God Creator on Producing for OTT

3|28|17   |     |   (1) comment


Ben Watkins is the creator, writer and producer of Hand of God, a series on Amazon Prime. At Light Reading's Cable Next-Gen conference in Denver, he explained the advantages of producing for an OTT platform versus traditional TV.
Upcoming Live Events
May 15-17, 2017, Austin Convention Center, Austin, TX
May 15, 2017, Austin Convention Center - Austin, TX
June 6, 2017, The Joule Hotel, Dallas, TX
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
FTTH No Slam Dunk for Cable
Carol Wilson, Editor-at-large, 3/23/2017
Unlocking China's $194B Telecom Market
Robert Clark, 3/27/2017
Ericsson Tightens Focus, Warns of $1.7B Q1 Hit
Iain Morris, News Editor, 3/28/2017
WiCipedia: Supergirls, No More Excuses & Media Monitoring
Eryn Leavens, Special Features & Copy Editor, 3/24/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
TEOCO Founder and CEO Atul Jain talks to Light Reading Founder and CEO Steve Saunders about the challenges around cost control and service monetization in the mobile and IoT sectors.
At MWC 2017, Qualcomm's CTO Matt Grob talks to Light Reading's CEO and Founder Steve Saunders about the progress being made in the development of the technologies and standards that will underpin 5G.
Animals with Phones
Working From Home Doesn't Work for Everyone Click Here
You shouldn't nap on your keyboard, for instance.
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.