Light Reading

Google Sells Moto Home to Arris for $2.35B

Craig Matsumoto
LR Cable News Analysis
Craig Matsumoto
12/19/2012
50%
50%

If the lingering Google sale of the Motorola Home business was adding to your holiday stress, here's an early present: Google struck a deal with Arris Group Inc. late Wednesday, for $2.35 billion in cash and stock.

That's $2.05 billion in cash and roughly $300 million in newly issued Arris stock, if you're keeping score at home. The shares give Google a 15.7 percent interest in Arris.

Arris also gets a license to those Motorola Mobility patents, which supposedly were the jewel of the Google/Motorola deal in the first place.

The deal is expected to close by April.

Why this matters
Sources were beginning to doubt Google would get the $2 billion price it wanted. But it worked out for the company, as Arris beat out Pace plc, which definitely submitted a bid, and possibly CommScope Inc. and Ericsson AB, which had been pegged as likely buyers.

The deal is going to be a challenge for Arris, which would double its head count to around 4,200. But the company catapults into a new level of business. Roughly 30 percent of its sales would be in set-top boxes after the deal, and Arris would become a stronger CMTS competitor to Cisco Systems Inc.

For more



— Craig Matsumoto, Managing Editor, Light Reading

(13)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
1/5/2013 | 2:03:41 AM
re: Google Sells Moto Home to Arris for $2.35B


So, Google got its asking price after all, and then some. First impression is that Arris, Pace and others must have wrangled it out.  Nice situation for Google, if that's the case.

abdullah
50%
50%
abdullah,
User Rank: Light Beer
1/5/2013 | 2:03:39 AM
re: Google Sells Moto Home to Arris for $2.35B





The real jewel in all this is the PON business located in Lowell, MA.  Will be interesting to see how Arris integrates this into it's portfolio. It's a shame that Tellabs didn't snatch up this gem.




SabrinaChow
50%
50%
SabrinaChow,
User Rank: Light Beer
1/5/2013 | 2:03:38 AM
re: Google Sells Moto Home to Arris for $2.35B


It's clear that the video platforms were the main course in this deal.  The transaction is consistent with previous purchases like EGT, Digeo, and Bigband.  But there is a bunch of redundancy especially with respect to CCAP/next gen.  Homegrown E6, Bigband MSP, and now Moto VESP - they won't all coexist so it will be interesting to see what strategy takes hold.


And that strategy will be very important because ARRIS is losing CMTS market share; word is that they no longer have any C4 footprint at Charter and Cox.  Wonder if any other MSO's would follow suit.  The point is that selling new boxes when the old ones were removed is a tall order...


 


 

AESerm
50%
50%
AESerm,
User Rank: Light Beer
1/5/2013 | 2:03:36 AM
re: Google Sells Moto Home to Arris for $2.35B


Thanks for shout out, Jeff. ARRS had smarts and ambition to match the Home assets. Seemed worth including in the list. Wondering now about GOOG's takeaway. Bought MOT for $13b, now less $2+b and the Home patents? They kept the Mobility patents? Did they get what they wanted?

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
1/5/2013 | 2:03:34 AM
re: Google Sells Moto Home to Arris for $2.35B


Regarding the PON business, Tellabs would have been interesting but how much overlap would there have been? My PON history is a little rusty.


They were working on cable PON, IIRC, so maybe Arris can make some use of that.


Beyond cable PON, how well was the Motorola PON business really doing?

btierney
50%
50%
btierney,
User Rank: Light Beer
1/5/2013 | 2:03:34 AM
re: Google Sells Moto Home to Arris for $2.35B


Let me guess, you worked for Quantum Bridge.  Gem?  Yeah right.

Pete Baldwin
50%
50%
Pete Baldwin,
User Rank: Light Beer
1/5/2013 | 2:03:33 AM
re: Google Sells Moto Home to Arris for $2.35B


>Having lived through it, Tellabs would be a terrible PON partner for the fMot buisness.  Heck they HAD a 90% market share inside Verizon and allowed that to fritter away


> What I would expect is any non-cable portions of the old Mot PON business get either shut down or sold.  But Mot had few customers for the business so it has almost no Telco value.


OK, that's what I thought.  Thanks, 7.

paolo.franzoi
50%
50%
paolo.franzoi,
User Rank: Light Beer
1/5/2013 | 2:03:33 AM
re: Google Sells Moto Home to Arris for $2.35B


Craig,


Having lived through it, Tellabs would be a terrible PON partner for the fMot buisness.  Heck they HAD a 90% market share inside Verizon and allowed that to fritter away.


What I would expect is any non-cable portions of the old Mot PON business get either shut down or sold.  But Mot had few customers for the business so it has almost no Telco value.


seven


 

AESerm
50%
50%
AESerm,
User Rank: Light Beer
1/5/2013 | 2:03:30 AM
re: Google Sells Moto Home to Arris for $2.35B


The strategy brains at Suwanee have already thought through some of this integration, I suspect, but it will be challenging, regardless of smooth integration spin. This is 3x bigger than C-COR, the deal that created a "cable gear giant" five years ago. Maybe market cap/value a better metric: ARRS was bigger than C-COR, whereas MOT is bigger (40%?) than ARRS. 

From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?