HOME     MENU     SEARCH     NEWSLETTER    
NEWS & INFORMATION FOR TECHNOLOGY PURCHASERS. UPDATED ABOUT A MINUTE AGO.
You are here: Home / Mobile Industry News / Google Sells Off Motorola Home Unit
Druva Endpoint Backup:
Enterprises Realize Simple Secure Backup with Druva
www.druva.com
Google Sells Motorola Home Unit to Arris Group
Google Sells Motorola Home Unit to Arris Group
By Jennifer LeClaire / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
DECEMBER
20
2012



Google is shedding some of the Motorola assets that don't fit its master plan -- and making a tidy sum in the process. Google has sold Motorola Home, a division of Motorola Mobility, to Arris Group for $2.35 billion in a cash-and-stock transaction. Google will own about 16 percent of Arris after the deal closes.

By acquiring Motorola Home, Arris is grabbing a next-generation consumer video products and services business from Google. Arris will use the hardware to support its existing product offering while also building out new products for broadband. The transaction will also increase the company's patent portfolio and provide a license for many Motorola Mobility patents.

Robert Stanzione, chairman and CEO of Arris, expects the acquisition to create a leader in the video, data, and voice products, as well as future generation IP-based broadband products. He expects ever-expanding consumer demand for bandwidth to continue to drive growth across cloud and network technologies the company provides to power entertainment products and services.

Shedding Profits?

"Acquiring Motorola Home builds on Arris' history, creating a global player with significant footprint, revenue and cash flow," Stanzione said. "It also adds expertise in video and a larger presence in the home to our core strengths in voice and data, ensuring we are even better positioned to capitalize on and manage the evolution toward multi-screen home entertainment."

Motorola Home is a profitable business that generated revenues of $3.4 billion for the trailing four quarters ended Sept. 30. Once Arris integrates the Motorola Home technology, the company will boast more than 500 customers in 70 countries. The acquisition will more than triple Arris pro forma combined revenue to about $4.7 billion for the trailing four-quarter period ending Sept. 30. The combination is expected to generate approximately $100 million to $125 million in annual cost synergies.

"Our Home business has been a vibrant part of Motorola Mobility's portfolio, innovating while delivering strong financial performance," said Dennis Woodside, CEO of Motorola Mobility, the Google subsidiary that is the parent of Motorola Home. "The industry faces its biggest technology transformation, and together Arris and Motorola will be able to accelerate related innovations such as the introduction of the IP-connected home environments that service providers need and that their consumers crave."

Overpaying for Patents

Roger Entner, principal analyst at Recon Analytics, told us Google's move to shed Motorola home was both surprising and not. The reason it's not surprising is that Google is a software company, not a hardware company, he said, but then why did Google buy Motorola?

"It's perplexing because Google really wants to get into the home and Motorola set-top boxes have 40 percent market share. So this could have very easily moved away from Motorola into the homes of many people and provide them with Google TV. Instead they prefer to partner with others to provide that and then do it over the top," Entner said.

"Maybe after all they just bought Motorola for the patents, which would have been very expensive. There still is this paranoia about patents, but I think Google overbought."

Google acquired Motorola for $12.5 billion earlier this year.

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY INTEREST YOU
Forrester study shows 187% ROI with Druva Endpoint Backup: In a commissioned study conducted by Forrester Consulting on behalf of Druva, Forrester found that the costs and benefits for a composite organization with 3,000 inSync users, based on customer interviews, are: 1) 187% return on investment, and 2) Total cost savings and benefits of $3.8 million. Click here to access the study now.
MORE IN MOBILE INDUSTRY NEWS
Product Information and Resources for Technology You Can Use To Boost Your Business

NETWORK SECURITY SPOTLIGHT
Using Internet-connected devices without strong passwords is inherently risky, as illustrated by reports that a Russian Web site is showing live footage from thousands of people's webcams.

ENTERPRISE HARDWARE SPOTLIGHT
Doctor Who had K-9, the robot dog that accompanied him on adventures through space. Now, Mountain View has K5, a 5-foot-tall, 300-pound robot security guard patrolling in the Bay Area.

MOBILE TECHNOLOGY SPOTLIGHT
To better its customer service, Comcast is pulling out at least some of the stops. The cable giant has launched an app so you can track the cable guy in real time. It's designed to ease customer frustration.

© Copyright 2014 NewsFactor Network, Inc. All rights reserved. Member of Accuserve Ad Network.