& cplSiteName &

Google Sets Deadline for Motorola Home Bids

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner

Google (Nasdaq: GOOG) has set a deadline of today (Dec. 7) to secure bids for Motorola Mobility LLC 's Home unit, with Arris Group Inc. (Nasdaq: ARRS) and a number of private equity firms expected to be among the bidders, reports The Wall Street Journal, citing three unnamed sources. (See Could An Arris-Motorola Marriage Work? )

The paper said Google might extend the deadline, noting that Pace plc and Technicolor (Euronext Paris: TCH; NYSE: TCH) could also join the fray in a deal expected to fetch in the range of US$1.5 to $2.5 billion. Sources have told Light Reading Cable that Google could get about $2 billion for the assets, and that Google is anxious to get a deal done before the end of the year. Google has hired Barclays Capital to vet the sales process. (See Google Taps Barclays to Shop Motorola Home and Google Preps Sale of Motorola Home.)

As part of any deal, Google is also looking to strip out some of the intellectual property tied to Motorola Home, a unit that makes set-tops, cable modems and cable network access gear, the paper added, corroborating what sources have also told Light Reading Cable in recent months.

One industry insider says Google has not gotten the amount of action on the assets that it had anticipated. Regardless, sources have also confirmed that Arris is expected to make a play for Motorola Home, though the vendor will likely need special financing to pull off the deal. Pace plc and Ericsson AB (Nasdaq: ERIC) have also expressed interest, according to sources, though Ericsson's interest appears to have cooled. (See Don't Count Out Ericsson.)

The TiVo factor
One big question heading into this part of the process is the overhang created by TiVo Inc. (Nasdaq: TIVO)'s pending patent litigation with Motorola, which is taking place in the U.S. District Court for the Eastern District of Texas Texarkana Division.

On Wednesday, the judge in the case, Rodney Gilstrap, issued the claim construction brief, a critical step in which the court interprets the language of TiVo's intellectual property, including TiVo's key Multimedia Time Warping System patent (No. 6,233,389). After that, the parties can either settle or prepare for a court clash that's anticipated to get underway in May 2013. (See Cisco, Motorola May Be Next to Settle With TiVo and TiVo Sues Motorola & Time Warner Cable.)

That overhang is significant because TiVo has been successful in winning court battles or scoring lucrative settlements. It's not yet known how or if Google will factor the pending litigation with TiVo into the terms of a Motorola asset sale, or if it intends to settle the TiVo issue before moving the sales process to its final phases. (See AT&T to Pay TiVo $215M-Plus to Settle DVR Fight, Verizon to Pay TiVo $250M to Settle DVR Fight , Dish, EchoStar to Pay TiVo $500M to Settle Suit and No Cash Swap in Microsoft-TiVo Settlement.)

Motorola and Google were not immediately available for comment Friday morning. Google closed its $12.5 billion acquisition of Motorola Mobility on May 22. Cable industry vet Marwan Fawaz took the helm of Motorola Home in June. (See Google Closes $12.5B Motorola Deal and Motorola's Home Unit Hires New Leader .)

— Jeff Baumgartner, Site Editor, Light Reading Cable

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Jeff Baumgartner
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 4:00:16 AM
re: Google Sets Deadline for Motorola Home Bids

Seems to me that if Google strips out a bunch of intellectual property that it will greatly diminish the value of Motorola Home, especially as the set-top function gets built into smart TVs and tablets and operators start to migrate to a gateway/client architecture. Still not sure how they can hope to get $2B or more without including the IP or at least giving a perpetual license to it and maybe the abiility to license it to others.

And that TiVo question is not exactly a minor matter. JB

Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
Friday, October 28, 1:00PM EDT
Security: The Plusses and Minuses of Open Source Software
Nick Feamster, Acting Director, Center for Information Technology Policy, Princeton University
Wednesday, November 16, 1:00PM EST
SDN 101
John Isch, Practice Director, Network & Voice, Orange Business Services
Friday, November 18, 1:00PM EST
SDN & Open Source
Christopher W. Rice, Senior Vice President of AT&T Labs, Domain 2.0 Architecture and Design
Wednesday, November 30, 1:00PM EST
SDN & the Software Defined Data Center
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
OneAccess NFV Solutions

10|26|16   |   5:30   |   (0) comments

Antoine Clerget, CTO of OneAccess, discusses how his company has expanded its product line from enterprise-class routers to include a universal virtualized CPE as well as a suite of VNFs to help telco customers evolve to an NFV future.
LRTV Custom TV
The Journey Toward Carrier-Grade WiFi

10|26|16   |   3:39   |   (0) comments

In this Light Reading interview, Dave Sperling, CTO at Smith Micro Software and active participant of the WBA's policy working group, discusses the need for carrier-grade WiFi. Technical and business challenges slowing the fulfillment of this goal are addressed, as well as management strategies that will enable communication service providers to optimize end user ...
LRTV Custom TV
ZTE BBWF Highlights

10|26|16   |     |   (0) comments

At BBWF 2016, ZTE showed a broad range of innovative technologies that are kick-starting an ultrafast broadband journey.
LRTV Custom TV
Next-Generation Technology Beyond DOCSIS 3.1

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Liu Jianhua speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Hybrid Video Solutions to Change TV, Change Future

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Ian Locke speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei Future-Oriented Giga Coax Network

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Allen Wang speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei at SCTE 2016

10|20|16   |     |   (0) comments

Join Alan Breznick of Light Reading and take a sneak peek at the Huawei booth at SCTE 2016.
LRTV Custom TV
Assuring Network Quality in a Rapidly Changing Environment

10|20|16   |     |   (0) comments

As the rate of change and complexity increases in agile networks, the importance of introducing DevOps methodologies for integrating active test and assurance solutions throughout the full service lifecycle becomes critical to ensure that customers are experiencing the service quality they demand. The industry landscape is changing, and software-based test and ...
Telecom Innovators Video Showcase
A10 Networks on Service Providers' Industry Needs

10|20|16   |     |   (0) comments

Light Reading's Steve Saunders hears how A10 enables service providers to accelerate, secure and optimize their application delivery to drive down costs, enhance service availability, and better respond to customer requirements, so they can improve customer satisfaction, monetize their network, and grow revenues.
LRTV Custom TV
New NFV Use Cases for Cable TV

10|19|16   |     |   (0) comments

A large number of NFV use cases are focused on the enterprise domain, looking at virtualization of customer-premises equipment (CPE). To date, there has been little focus on the use cases and business case for virtualization of the video content delivery networks required to deliver unicast and streaming video to consumers. Amdocs commissioned Analysys Mason to ...
Women in Comms Introduction Videos
Meet the Future Workforce: New Faces, Expectations & Motivations

10|19|16   |   5:33   |   (1) comment

Millennials and their younger peers, Gen Z, expect more out of their network and more out of their work. Intel's Lynn Comp shares how the industry can prepare for this new generation of workers.
LRTV Custom TV
ZTE Global Services User Congress 2016 Highlights

10|19|16   |     |   (0) comments

ZTE held its 2nd Global Service User Conference in Dusseldorf on October 13-14. Representatives from network operators, leading industry analysts and ZTE senior expertsattended the event, exploring the best practice in managed services and the vision to transform network operations into the operations center of the future (OpCF) in the software-defined networking ...
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Hot Topics
Attacks Have Major Internet Sites on the Ropes
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/21/2016
Trump: Dump AT&T/TW & Comcast/NBC
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/24/2016
T-Mobile: AT&T & TW Means Ma Bell Not Focused on Mobile
Dan Jones, Mobile Editor, 10/24/2016
Layer3 TV Comes to Town, Hints at Future
Mari Silbey, Senior Editor, Cable/Video, 10/21/2016
Verizon Wants More Data on Yahoo Breach
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
'Oh, Were You Looking for This?' Click Here
'I was just playing some games...'
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.