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:-áWill this sort of investment put other vendors (perceived or otherwise) at a disadvantage when it comes to getting biz at Comcast?-á The same could be said for any startup that gets VC money from Comcast Ventures, but that has not always meant an automatic deal.-á 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? -á -á
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.-á 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?-á
Educational Resources
sponsor supplied content
Educational Resources Archive
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


Hĺkan 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
Comcast Formally Ends Its Bid for TWC
Mari Silbey, Independent Technology Editor, 4/24/2015
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
Adtran Is Developing White Box GPON Tech
Ray Le Maistre, Editor-in-chief, 4/24/2015
Comcast Merger May Hinge on Hulu
Mari Silbey, Independent Technology Editor, 4/22/2015
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