Light Reading

Google Sets Deadline for Motorola Home Bids

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
12/7/2012
50%
50%

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
Jeff Baumgartner
50%
50%
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

Flash Poll
From The Founder
The Swedish vendor has undergone a significant transformation during the past few years, adjusting to the demands of next-generation communications companies.
LRTV Documentaries
The 3GPP's Road to 5G Standardization

4|17|15   |   4:43   |   (0) comments


Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
LRTV Documentaries
AlcaLu CTO Makes the Case for a New 5G Air Interface

4|16|15   |   3:54   |   (0) comments


Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
LRTV Documentaries
AlcaLu + Nokia: The New Uber-Vendor

4|15|15   |   2:42   |   (4) comments


Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
LRTV Huawei Video Resource Center
Huawei's Data Center Power Play

4|15|15   |   6:22   |   (0) comments


Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
LRTV Huawei Video Resource Center
Huawei’s Routers, Switches Get the Green Mark

4|15|15   |   2:02   |   (0) comments


TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
LRTV Documentaries
A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

4|15|15   |   3:17   |   (0) comments


Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
LRTV Huawei Video Resource Center
Accounting for Better Solutions

4|10|15   |   02:31   |   (1) comment


Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
LRTV Huawei Video Resource Center
What's in Store for Huawei & DataCore?

4|10|15   |   05:44   |   (0) comments


At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
LRTV Huawei Video Resource Center
Du Puts Its Faith in Huawei's Routers

4|9|15   |   3:42   |   (0) comments


Adnan Masood, director of Enterprise MS Solutions Marketing at du, the United Arab Emirates (UAE) operator also known as Emirates Integrated Telecommunications Company, explains why his company chose to use Huawei's multifunctional AR routers as part of its managed enterprise services.
LRTV Huawei Video Resource Center
Huawei Gets Active in the Data Center

4|9|15   |   3:17   |   (0) comments


With enterprise users looking to maximize the use of their data center assets, Huawei’s Chief Architect & Technical Director of IT Data Center Solutions, Bruce Su, explains how the company's six-layer active-active data center solution is eradicating the need to deploy passive, redundant data center assets.
LRTV Huawei Video Resource Center
Blue Consult & Huawei for a Better Solution

4|8|15   |   4:01   |   (0) comments


Martin Rott, CEO, and Marc Metzler, head of sales virtualization, from Germany's Blue Consult discuss their collaboration with Huawei and TrendMicro to develop a secure, scalable IT platform that can meet the needs of the most demanding enterprise users.
LRTV Huawei Video Resource Center
Beach Petroleum on eLTE & Mining

4|8|15   |   3:09   |   (0) comments


Network systems integrator Jeremy Hamlyn explains how Huawei's secure packet-based trunking communications system, eLTE, can help remote communities and companies in the mining, oil and gas sectors, deploy efficient communications networks that are perfect for video and data as well as voice.
Upcoming Live Events
May 5, 2015, Hyatt McCormick Place, Chicago, IL
May 6, 2015, Georgia World Congress, Atlanta, GA
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
All Upcoming Live Events
Infographics
Network Instruments, a JDSU division, shares results from its 2015 State of the Network, a global survey on security.
Hot Topics
Verizon Scores New OTT Content Deals
Mari Silbey, Independent Technology Editor, 4/16/2015
Can WiFi Calling Find Its Voice?
Iain Morris, News Editor, 4/13/2015
Senator Proposes New 'Title X' for Net Neutrality
Carol Wilson, Editor-at-large, 4/13/2015
Nokia, Alcatel-Lucent in Merger Talks
Iain Morris, News Editor, 4/14/2015
Nokia & Alcatel-Lucent: What's Going On?
Ray Le Maistre, Editor-in-chief, 4/15/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
LR CEO and Founder Steve Saunders sits down with the head of Qosmos to talk about the changing state of the art in deep packet inspection technology, including its role in SDN and NFV architectures.
Cats with Phones
Steve's Phone Click Here
Steve Saunders's personal phone.