Light Reading
U.K.-based set-top giant is first to confirm that it's bidding for Motorola's cable business, which might fetch from $1.5B to $2.5B

Pace Bids For Motorola Home

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
12/10/2012
50%
50%

U.K. set-top maker Pace plc confirmed Monday that it has placed a bid for Motorola Mobility LLC 's Home business, which makes set-tops, cable modems and cable network access equipment. (See Pace Confirms Moto Bid .)

The Wall Street Journal reported last week that Google (Nasdaq: GOOG) had set a bidding deadline of Friday, Dec. 7, with offers expected to be in the range of $1.5 billion to $2.5 billion. In addition to Pace, Arris Group Inc. (Nasdaq: ARRS) and some private equity firms are also believed to have submitted bids. (See Google Sets Deadline for Motorola Home Bids .)



Industry sources told Light Reading Cable that any offers are likely to be towards the lower end of that reported range as bidders will likely be concerned about Motorola's outstanding litigation with TiVo Inc. (Nasdaq: TIVO). (See Does Google Have a Plan B? )

Pace said in a statement that it "has submitted an indicative, non-binding, proposal to Google in respect of a potential acquisition of its Motorola Home business," adding that discussions are "currently at a preliminary stage" and there's no certainty that a deal will be reached.

Pace said its proposal is classified as a "reverse takeover," because it's smaller than Motorola Home. Trading in Pace's ordinary shares have been suspended as of Monday afternoon and will re-commence when "sufficient information" on a potential deal is made available to shareholders or if negotiations break down.

Pace, which has been trying to build up its U.S. business for years, supplies set-top boxes to the nation's largest cable operator Comcast Corp. (Nasdaq: CMCSA, CMCSK), including the new hybrid QAM/IP X1 gateway and much simpler Digital Terminal Adapter (DTA) devices. Pace is also developing an all-IP HD client device for Comcast called the XI3. (See Meet Comcast's IP-Only Set-Top and Philly Next for Comcast's X1 .)

Pace ended the first half of 2012 with cash and cash equivalents of £78.4 million (US$125.96 million) and total assets of £1.35 billion (US$2.16 billion), so it will need some help financing a deal if it comes in the expected range. A source familiar with the process told Light Reading Cable that Google is willing to help a buyer secure a loan in the neighborhood of $1 billion.

Arris declined to comment on speculation that it had also made a bid for Motorola's cable business.

Why this matters
A successful bid would make Pace, already the world's largest set-top supplier, the leading player in the U.S. and enable it to expand into new areas of business, including cable modems, cable modem termination systems (CMTSs) and edge QAMs.

For more



— Jeff Baumgartner, Site Editor, Light Reading Cable

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:15 AM
re: Pace Bids For Motorola Home


Bloomberg's reporting that Arris and Pace have put in the "most compelling" bids for the Moto Home business, and it's unlikely that a private equity bidder would emerge as the winner.  The other interesting wrinkle is that Google might retain some equity and the Moto Home patents.  I haven't heard about the equity piece, but the notion of having Google retain some or all of that IP has come up in my talks.


Not much of an impact on Arris shares today.. .they're up 8 cents (0.56%) to $14.37 each at last check (1:14pm ET). And Arris is not commenting on the latest bidding scuttlebutt. JB


 

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:15 AM
re: Pace Bids For Motorola Home


As @techwzrd pointed out on the boards, TiVo and Pace are already partners, with Pace among the licencees for Pace's porting kit for gateways and boxes that will tie Pace hardware with TiVo's software/UI.  Will have to find out if that scenario could impact the pending litigation between Motorola and TiVo or if this still means Google would do well to get that settled before it can get a deal together. JB

Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:14 AM
re: Pace Bids For Motorola Home


Here's how Pace 'splained it in its release/statement:


"Pace can confirm that the potential acquisition of Google’s Motorola Home business would


be classified as a “reverse takeover” under the UK Listing Rules given its size relative to


Pace."  JB




Flash Poll
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Hot Topics
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Verizon Launches QR Code Security Solution
Carol Wilson, Editor-at-large, 8/26/2014
Fiber Revival at Deutsche Telekom
Iain Morris, 8/25/2014
M2M's In Fashion: Wearables Play the US Open
Sarah Reedy, Senior Editor, 8/25/2014
Like Us on Facebook
Twitter Feed