Light Reading

Comcast to Plow $150M Into Arris

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
1/15/2013
50%
50%

Comcast Corp. will end up with an almost 8 percent stake in Arris Group Inc. once the vendor successfully completes its US$2.35 billion acquisition of Motorola Mobility LLC's Home unit from Google.

The agreement, announced Monday, calls for Arris to sell 10.6 million shares of its common stock, valued at $150 million, to Comcast. The deal will reduce the number of shares Arris was originally slated to issue to Google while increasing the cash paid to Google by $150 million.

If the deal gets done, Comcast and Google will each own about 7.85 percent of the outstanding Arris shares upon the closing of the transaction based on Arris's current capitalization. Under the original deal, comprising $2.05 billion in cash and $300 million in newly issued Arris stock, Google was to get a 15.7 percent interest in Arris. Google and Arris expect their agreement to close by April.

Why this matters
The investment, though immaterial to Comcast, indicates the strategic importance the operator is placing on one of its largest suppliers of set-tops and other broadband equipment. The deal also puts Comcast and Google on equal footing at the combined company when Arris completes its acquisition of Motorola Home.

For more



— Jeff Baumgartner, Site Editor, Light Reading Cable



(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/16/2013 | 3:28:05 PM
re: Comcast to Plow $150M Into Arris
One of the first things that crossed my mind was:-Will this sort of investment put other vendors (perceived or otherwise) at a disadvantage when it comes to getting biz at Comcast?- The same could be said for any startup that gets VC money from Comcast Ventures, but that has not always meant an automatic deal.- Any cable vendors out there that care to share an opinion on what it means for you -- good, bad, or otherwise? JB
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
1/16/2013 | 2:36:35 PM
re: Comcast to Plow $150M Into Arris
Yea, MSOs have made a lot of VC-like investments and joined in JVs to back suppliers and startups, but I can't recall a stock acquisition like this one, especially in a major cable supplier. It may be unprecedented in cable lore. Can anyone else recall an MSO-supplier stock deal like this? - -
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/16/2013 | 12:57:09 PM
re: Comcast to Plow $150M Into Arris
I can't recall any...unless TCI did anything like this with Telewire back in the day.- Comcast's VC unit invests in a lot of vendors but most of those investments are in the single-digit millions, so this appears to be quite a bit different.
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
1/15/2013 | 7:17:02 PM
re: Comcast to Plow $150M Into Arris
Has an MSO ever made a direct stock acquisition in a major cable supplier like this before?-
Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Last week I dropped in on "Hotlanta," Georgia to moderate Light Reading's inaugural DroneComm conference a unique colloquium investigating the potential for drone communications to disrupt the world's telecom ecosystem. As you will see, it was a day of exploration and epiphany...
LRTV Documentaries
Cable Eyeing SDN for Headend, Home Uses

5|26|15   |   05:57   |   (1) comment


CableLabs is looking at virtualizing CMTS and CCAP devices in the headend, as well as in-home devices, says CableLabs' Karthik Sundaresan.
LRTV Documentaries
Verizon's Emmons: SDN Key to Cost-Effective Scaling

5|22|15   |   03:53   |   (0) comments


For Verizon and other network operators to ramp up available bandwidth cost effectively, they need to move to SDN and agree on how to do that.
LRTV Documentaries
Lack of Universal SDN a Challenge

5|21|15   |   04:51   |   (3) comments


Heavy Reading Analyst Sterling Perrin talks about how uncertainty about SDN standards and approaches may be slowing deployment.
LRTV Custom TV
Steve Vogelsang Interview: Carrier SDN

5|20|15   |   05:02   |   (0) comments


Sterling Perrin speaks to Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, about the new Carrier SDN-enabling Network Services Platform and the operator challenges it solves.
LRTV Custom TV
Carrier SDN: On-Demand Networks for an On-Demand World

5|20|15   |   20:52   |   (0) comments


Steve Vogelsang, Alcatel-Lucent CTO for IP Routing & Transport business, talks about requirements and benefits of Carrier SDN during the keynote address at the Light Reading Carrier SDN event May 2015.
LRTV Documentaries
The Security Challenge of SDN

5|19|15   |   02:52   |   (0) comments


CenturyLink VP James Feger discusses concerns that virtualization could create new vulnerabilities unless network operators build in safeguards.
LRTV Custom TV
NFV Elasticity Highly Available VNF Scale-Out Architectures for the Mobile Edge

5|18|15   |   5:50   |   (0) comments


Peter Marek and Paul Stevens from Advantech Networks and Communications Group talk about their NFV Elasticity initiative and the company's latest platforms for deploying virtual network functions at the edge of the network. Packetarium XL and the new Versatile Server Module: 'designed to reach parts of the network that other servers cannot reach.'
LRTV Huawei Video Resource Center
Bay Area Spark Meetup 2015

5|14|15   |   3:54   |   (0) comments


Developed in 2009, Apache Spark is a powerful open source processing engine built around speed, ease of use and sophisticated analytics. This spring, Huawei hosted a meetup for Spark developers and data scientists in Santa Clara, California. Light Reading spoke with organizers and attendees about Huawei's code contributions and long-term commitment to Spark.
LRTV Custom TV
The Transport SDN Buzz

5|12|15   |   06:01   |   (1) comment


Sterling Perrin, senior analyst at Heavy Reading, speaks with Peter Ashwood-Smith of Huawei and Guru Parulkar of ON.Lab about the evolution of transport SDN and the integration of technologies.
LRTV Custom TV
Next-Generation CCAP: Cisco cBR-8 Evolved CCAP

5|5|15   |   04:49   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explained the innovation design of Cisco's cBR-8, the industry's first Evolved CCAP, including DOCSIS 3.1 design from ground-up, distributed CCAP with Remote PHY and path to virtualization. Cisco's cBR-8 Evolved CCAP is the platform that will last through the transitions.
LRTV Custom TV
Meeting the Demands of Bandwidth & Service Group Growth

5|1|15   |   5:35   |   (0) comments


Jorge Salinger, Comcast's Vice President of Access Architecture, explains how DOCSIS 3.1 and multi-service CCAP can meet the demands of the bandwidth and service group growth.
LRTV Custom TV
DOCSIS 3.1: Transforming Cable From Hardware-Defined Network to Software-Defined Network

4|29|15   |   03:48   |   (0) comments


John Chapman, Cisco's CTO of Cable Access Business Unit and Cisco Fellow, explains how DOCSIS 3.1 can transform cable HFC network to a more agile software-defined network.
Upcoming Live Events
June 8, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Mchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Procera has gathered facts, stats and customer experience feedback from a survey of 540 users from across the globe.
Hot Topics
10 Alternate Uses for Tablets
Eryn Leavens, Copy Desk Editor, 5/22/2015
Bidding War for TWC Looks Likelier
Alan Breznick, Cable/Video Practice Leader, 5/22/2015
Comcast Targets 6 New Gigabit Markets
Mari Silbey, Senior Editor, Cable/Video, 5/21/2015
Chattanooga Charts Killer Gigabit Apps
Mari Silbey, Senior Editor, Cable/Video, 5/20/2015
Potholes Lurk in Indian Smart City Project
Gagandeep Kaur, Contributing Editor, 5/22/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With 200 customers in 60 countries, Stockholm-based Net Insight has carved out a solid leadership position in one of the hottest vertical markets going in comms right now: helping service providers and broadcasters deliver video and other multimedia traffic over IP networks. How has Net Insight managed to achieve this success in the face of immense competition from the industry giants?
My ongoing interview tour of the leading minds of the telecom industry recently took me to Richardson, Texas, where I met with Rod Naphan, CTO and SVP, Solutions, ...
I recently popped down to Texas to chat with CEO Eric L. Pratt about his company, Taqua.
Cats with Phones
Too Fluffy to Talk Click Here
Elmer found that his bountiful fur got in the way of meaningful conversation.