& cplSiteName &

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




Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
Alan Bateman, Director, Agile Transformation
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
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 Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
LRTV Custom TV
NFV in 2016: Part 2 – Climbing the Virtualization Maturity Curve

7|19|16   |   06:56   |   (0) comments


Many of the initial use case implementations are single-vendor and self-contained. The industry is still climbing the virtualization maturity curve, needing further clarity and stability in the NFV infrastructure (NFVi) and greater availability and choice of virtualized network functions (VNFs). Interoperability between NFVis and VNFs from different vendors ...
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Five of the Top 10 most targeted countries in Check Point Software Technologies' global Malware & Threat Index for Q1 2016 are in Africa.
Hot Topics
Cisco Developing 'Monica' Digital Assistant
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/22/2016
Rocket Fiber Lights Up Detroit With Gigabit
Elizabeth Miller Coyne, Managing Editor, 8/22/2016
'Most Wanted' Kobi Comes Home
Ray Le Maistre, Editor-in-chief, 8/23/2016
Arista Banned From Importing Products – Cisco
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/23/2016
How the Padres Hit an IoT Home Run
Mitch Wagner, West Coast Bureau Chief, Light Reading, 8/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.