Newsletters
Technology, Discovery & Innovation NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Computing Digital Life Discovery Space More Topics...
APC Free White Paper
Optimize your network investment &
Enter to win a Samsung Galaxy Note

www.apc.com
Mobile Industry News
Average Rating:
Rate this article:  
Google Sells Motorola Home Unit to Arris Group
Google Sells Motorola Home Unit to Arris Group

By Jennifer LeClaire
December 20, 2012 2:24PM

Bookmark and Share
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.
 



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:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Industry News
1.   Virgin Mobile Offers Custom Plans
2.   Asana Revamps Mobile App
3.   FTC Wants Fix for Mobile Cramming
4.   Rhapsody Hits 2 Million Subscribers
5.   T-Mobile Calls 'BS' on AT&T Promo


advertisement
FTC Wants Fix for Mobile Cramming
Overcharges are 'the perfect scam'.
Average Rating:
U.S. Firms Fish for Growth Overseas
Tech trendsetters are going abroad.
Average Rating:
Competition Spurs Ultra-Fast Internet
Gigabit broadband push is underway.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
New 'Backoff' Malware Slips Undetected into Retail Systems
'Malicious actors' are using a new variety of malware to access consumer payment data remotely through point-of-sale systems, according to a report from the Department of Homeland Security.
 
IBM Beefs Up Identity Intelligence Security Solutions
Big Blue is betting big on identity intelligence. IBM just acquired a private firm with security software to govern user access to apps and data across cloud and on-premise environments.
 
USB Security Flaw Lets Hackers Hijack PCs
Hackers can use the firmware that controls USB functions to take control of computers, say security experts. That means there may be a new class of attack for which there are no defenses.
 

Enterprise Hardware Spotlight
AMD's ARM-Based Opteron Out in $3K Dev Kit
It's dubbed "Seattle" and it's AMD's first 64-bit ARM-based Opteron processor. The low-power chip is being released as part of AMD’s Opteron A1100-series developer kit, and aimed at high-end data center needs.
 
Apple Updates MacBook Pros, Cuts Prices Up to $100
The popular MacBook Pro laptop line just got an update and a price cut of as much as $100. The MacBook Pro with Retina display now includes faster processors and double the memory.
 
Dell, BlackBerry Not Sweating Apple-IBM Alliance
IBM's recent move to partner with Apple to sell iPhones and iPads loaded with corporate applications has excited investors in both companies, but two rivals say they are unperturbed for now.
 

Mobile Technology Spotlight
Virgin Mobile Offers Custom Smartphone Plans
As the wireless carrier wars continue heating up, Virgin Mobile just threw the customization coal onto the fire. The firm has debuted a no-annual-contract plan with rates based on individual use.
 
Collaboration Provider Asana Revamps Mobile App
Asana, a collaboration software provider started by a Facebook founder, is now out with a rebuilt native iOS mobile app. It replaces one that even the company admits was not up to par.
 
FTC Wants Fix for 'Perfect Scam' of Mobile Cramming
The U.S. Federal Trade Commission has issued new guidelines to curb “mobile cramming,” a troublesome practice that adds unauthorized third-party charges to mobile phone bills.
 

Navigation
Sci-Tech Today
Home/Top News | Computing | Digital Life | Discovery | Space | Innovation | Health | Science News
Environment
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.