Google Sells Motorola’s Home Division to ARRIS


A year ago, Google purchased Motorola Mobility for $12.5 billion. Since then, Motorola’s phone division has continued to put out devices seemingly as if it had never been purchased. However, many wondered what would happen to Motorola Home – the division responsible for cable boxes and various other living-room centric products – after the buyout was complete.

Today, we have the answer. Both parties officially announced that Motorola Home would be making its way to ARRIS’ corporate umbrella, another cable-box provider and telephony provider, for $2.35 billion in cash and stock. According to the press release:

Under the terms of the agreement, upon closing of the transaction, Google will receive $2.05 billion in cash and approximately$300 million in newly issued ARRIS shares, subject to certain adjustments provided for in the agreement, representing an approximately 15.7% ownership interest in ARRIS post-closing.

Acquiring Motorola Home will enhance ARRIS’ ability to provide next-generation consumer video products and services, supporting a more comprehensive product offering while also accelerating its ability to deliver a comprehensive set of industry-leading new products for broadband to a wide spectrum of customers.  The transaction will increase ARRIS’ patent portfolio and provide a license to a wide array of Motorola Mobility patents.

Breaking through the PR-speak shows that this acquisition was more of a patent grab, which is something that Motorola has plenty of. Beyond that, Motorola’s position in the cable-box industry should help to bolster that of ARRIS.


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