& cplSiteName &

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?-
Featured Video
From The Founder
Light Reading founder Steve Saunders talks with VMware's Shekar Ayyar, who explains why cloud architectures are becoming more distributed, what that means for workloads, and why telcos can still be significant cloud services players.
Flash Poll
Upcoming Live Events
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
I'm Back for the Future of Communications
Phil Harvey, US News Editor, 4/20/2018
Verizon: Lack of Interoperability, Consistency Slows Automation
Carol Wilson, Editor-at-large, 4/18/2018
AT&T Exec Dishes That He's Not So Hot on Rival-Partner Comcast
Mari Silbey, Senior Editor, Cable/Video, 4/19/2018
Facebook Hearings Were the TIP of the Data Iceberg
Dan Jones, Mobile Editor, 4/20/2018
Pay-for-Play Is a Sticking Point in Congress
Mari Silbey, Senior Editor, Cable/Video, 4/18/2018
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial and often most challenging is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company Tribold from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed