Light Reading
Just in time for the holidays, Arris picks up a little something to increase its competitiveness against Cisco

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
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. 

Flash Poll
Wagner’s Ring
Data Centers Drive Telcos Into the Future

8|28|14   |   2:20   |   (2) comments


Data centers are at the heart of key trends driving telecom -- network virtualization, the drive for increased agility, and the need to compete with OTT providers.
LRTV Custom TV
Why SPs Should Consider Cisco's EPN

8|27|14   |   5:40   |   (0) comments


Sultan Dawood from Cisco discusses Cisco's EPN, which enables SPs to build agile and programmable networks delivering new network virtualized services using Cisco's Evolved Services Platform (ESP).
LRTV Huawei Video Resource Center
Huawei’s Showcase @ Big Telecom Event 2014

8|26|14   |   2.56   |   (0) comments


SoftCOM is Huawei's framework for telecom business and network transformation. Haofei Liu, Solution Marketing Manager, Carrier Business Group, Huawei, showcases Huawei's SoftCOM architecture in this video.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of Integrated Solutions on SoftCOM & NFV Monetization

8|26|14   |   4.43   |   (0) comments


Libin Dai, Director of Integrated Solutions, Carrier Business Group, discusses Huawei's SoftCOM and NFV monetization. Huawei believes that NFV monetization should be service-driven rather than network-driven, and that operators should have network transformation, service transformation and a compatible and collaborative ecosystem in place in order to deploy NFV.
LRTV Huawei Video Resource Center
Huawei @ BTE 2014: Director of US NFV Lab on CloudEdge & the Future of NFV

8|26|14   |   4.06   |   (0) comments


Sean Chen, Director of US NFV Lab at Huawei, discusses Huawei's new approach to NFV in open collaboration. Huawei believes that through Proof of Concept tests, it could help operators learn and communicate with the industry more effectively. Sean believes that successful implementation of NFV should have its values reaching to end users and discusses how Huawei's ...
LRTV Huawei Video Resource Center
Huawei's Highlights @ Big Telecom Event 2014

8|26|14   |   3.34   |   (0) comments


At the Big Telecom Event in Chicago Huawei showcases its high-level strategy, the SoftCOM architecture, which helps operators reduce the cost of ownership of their network infrastructure and generate additional revenue in the ICT service environment. Huawei showcases over 30 pilot programs from across the globe, focusing on the industry-leading commercial ...
LRTV Custom TV
VeEX – Live from the Show

8|21|14   |   5:58   |   (0) comments


An overview of VeEX Test and Measurement solutions including TX300S multi-service test set with VeExpress cloud-based management system, UX400 universal modular platform supporting 100G testing, and the redesigned RXT modular platform.
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Hot Topics
Rogers, Shaw Take Aim at Netflix
Mari Silbey, Independent Technology Editor, 8/26/2014
Utilities to Pump $11.2B Into Smart Grid – Study
Jason Meyers, Senior Editor, Utility Communications/IoT, 8/26/2014
Verizon Launches QR Code Security Solution
Carol Wilson, Editor-at-large, 8/26/2014
Fiber Revival at Deutsche Telekom
Iain Morris, 8/25/2014
M2M's In Fashion: Wearables Play the US Open
Sarah Reedy, Senior Editor, 8/25/2014
Like Us on Facebook
Twitter Feed