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
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
LRTV Custom TV
Exploring the Future of Cable Access

10|15|14   |   6:23   |   (0) comments


Cisco's Brett Wingo looks at where cable access architectures are heading, discussing the impact of DOCSIS 3.1, CCAP, Remote PHY, SDN, virtualization of cable networks and related technologies.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Forget the Internet, Brace for Skynet
Stephen Saunders, 10/15/2014
HBO Will Go OTT in 2015
Mari Silbey, Independent Technology Editor, 10/15/2014
Google: Carriers & Cloud Providers Need to Cooperate
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/16/2014
Could Data Be the New 'Currency'?
Ray Le Maistre, Editor-in-chief, 10/16/2014
iPad Air 2 Lets Users Switch Carriers Any Time
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/17/2014
Like Us on Facebook
Twitter Feed