& cplSiteName &

Motorola Seals Up Terayon

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
7/20/2007
50%
50%

The trials and tribulations of Terayon Communication Systems Inc. as a stand-alone entity have come to a close after Motorola Inc. (NYSE: MOT) completed its acquisition of the digital video specialist for $1.80 per share and a total value of $140 million.

Terayon has become a wholly owned subsidiary of Motorola and will be integrated into the company's newly created Home & Network Mobility business, which fuses together what was Motorola's Connected Home Solutions and Cellular Wireless Networks businesses. Dan Moloney, the head of Connected Home, is helming the newly combined entity.

Motorola said it will maintain Terayon's operations in Santa Clara, Calif. The deal is expected to have a neutral effect on Motorola earnings per share in 2007.

Following a bidding war that reportedly included Cisco Systems Inc. (Nasdaq: CSCO) and Harmonic Inc. (Nasdaq: HLIT) as other possible suitors, Motorola officially announced its intention to purchase Terayon on April 23, 2007. Terayon stockholders approved the deal on June 28. (See Motorola, Cisco Bidding for Terayon and Motorola to Buy Terayon for $140M.)

Motorola plans to use Terayon's products and expertise to shore up its digital video strategy. Of recent note, Terayon expanded its flagship CherryPicker Application Platform (CAP) with the release of the CAP-1000. Terayon claimed it to be the first video processing application platform to rate-shape "broadcast quality" MPEG-4 AVC-based standard- and high-definition video streams. (See Terayon Expands CherryPicker Lineup.)

Motorola, which just reported some disappointing second-quarter earnings due to flagging handset sales, is also trying to bolster its video and fixed mobile convergence strategy with acquisitions of Leapstone Systems Inc. and Modulus Video Inc. On Thursday, Motorola chairman and CEO Ed Zander said the company might pursue other "small acquisitions" in the IP and technology market, but didn't elaborate.

The closing ends the run of what was once among the most colorful and controversial vendors in the cable industry.

Terayon, once a supplier of Docsis cable modems and cable modem termination systems and a champion of the upstream-enhancing Docsis 2.0 platform, bugged out of that business for good in early 2005. Instead, the company trained its focus on digital video, spurred by Terayon's $100 million acquisition of Imedia Corp., the original maker of the CherryPicker, in July 1999.

Terayon was sued several years ago when CableLabs told the company to cease and desist claims that the vendor's S-CDMA technology would be part of an erroneous spec called Docsis 1.2.

S-CDMA, along with A-TDMA, eventually became part of Docsis 2.0.

— Jeff Baumgartner, Site Editor, Cable Digital News

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Fotons
50%
50%
Fotons,
User Rank: Light Beer
12/5/2012 | 3:05:08 PM
re: Motorola Seals Up Terayon
If you had gone back a little farther into Terayon's history, you would have noted that Terayon's life was even more twisted than you indicated.

During the bubble, they had a MainSail product line that included IADs and a concentrator capability that was used by some telcos for aggregating ATM from DSLAMs. Quite a journey to get to the Cherry Picker...

Cheers
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
12/5/2012 | 3:05:05 PM
re: Motorola Seals Up Terayon
that is taking a trip in the Wayback Machine, but definitely one stop I missed in this collection of TERN highlights/lowlights, of which there certainly are many to cite.
Featured Video
From The Founder
John Chambers is still as passionate about business and innovation as he ever was at Cisco, finds Steve Saunders.
Flash Poll
Upcoming Live Events
June 26, 2018, Nice, France
September 12, 2018, Los Angeles, CA
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 7-8, 2018, London, United Kingdom
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
The Telco Debt Binge May End Badly
Scott Raynovich, Founder and Principal Analyst, Futuriom, 6/15/2018
Larry Ellison Laughed at the Cloud, Now the Cloud Is Laughing Back
Mitch Wagner, Executive Editor, Light Reading, 6/20/2018
Ciena CTO Says No to Skynet, Advocates Adaptive Networks
Kelsey Kusterer Ziser, Editor, 6/14/2018
Source Packet Routing Gets Real in 2018
Sterling Perrin, Principal Analyst, Heavy Reading, 6/15/2018
Animals with Phones
Backing Up Your Work Is Crucial Click Here
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed