Light Reading

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        ADD A COMMENT
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
From The Founder
Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
LRTV Documentaries
CableLabs' Clarke Updates Cable Virtualization

4|23|15   |   05:41   |   (1) comment


Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. II

4|23|15   |   08:19   |   (1) comment


In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
LRTV Interviews
Ericsson's CTO Talks Transformation: Pt. I

4|23|15   |   09:27   |   (3) comments


In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
LRTV Documentaries
LTE Paves the Way for the 5G Revolution

4|20|15   |   4:20   |   (0) comments


Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
Upcoming Live Events
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
Hot Topics
What if the Comcast Merger Fails?
Mari Silbey, Independent Technology Editor, 4/20/2015
Google's WiFi-First Mobile Service 'Fi' Is Here
Dan Jones, Mobile Editor, 4/22/2015
Comcast Merger May Hinge on Hulu
Mari Silbey, Independent Technology Editor, 4/22/2015
Comcast Formally Ends Its Bid for TWC
Mari Silbey, Independent Technology Editor, 4/24/2015
Google Ready to Release Thousands of Loons
Sarah Thomas, Editorial Operations Director, 4/20/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
Cats with Phones
Learning Curve Click Here
Pierre could never remember how to use Excel.
Latest Comment