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Google Sells Motorola Set-Top Box Business For $2.35 Billion

By - Source: Motorola | B 7 comments

Arris Group, U.S. telecom equipment manufacturer, agrees deal to take over Moto division.

Google's rumored sale of Motorola's set-top box business has become a reality: the search engine giant has received $2.35 billion for the sale of Motorola Home.

Arris Group, Inc., a U.S. telecom equipment manufacturer based in Georgia, purchased the division of Motorola that is responsible for set-top boxes and system production.

The deal itself has been performed as a cash and stock transaction, which will give Google approximately a 15.7 percent ownership interest in Arris. Subject to regulator approval, Motorola's TV business should be owned by Arris' during 2013's quarter two.

Google apparently told Arris that it would cap its liability "to a very small number" should a lawsuit brought by TiVo against Motorola progress. TiVo is claiming billions in damages, alleging that Moto's mass production of DVRs infringe on patents owned by the digital video recording company.

Google noted that Motorola Home is profitable, with the firm generating revenue of $3.4 billion for the four quarters leading up to September 30. So why would the former, who purchased Moto for a $12.5 billion fee predominately for its patents portfolio, sell the division if it's profitable? Google has been constantly closing down Motorola offices, which has led to over 4000 employees being made redundant.

More recently, Google shut down Motorola's South Korea operations, subsequently leading to 500 job losses, in addition to closing down the firm's local websites.

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  • 0 Hide
    m32 , December 21, 2012 5:37 AM
    TiVo, why you mad bro?
  • 0 Hide
    Anonymous , December 21, 2012 7:40 AM
    What's a set top box?
  • 5 Hide
    techcurious , December 21, 2012 8:15 AM
    "Google's rumored purchase of Motorola's set-top box business has become a reality: the search engine giant has received $2.35 billion for the sale of Motorola Home."

    I'm confused.. Is Google buying it or selling it??? As far as I can tell, despite that statement, Google is Selling!
  • 1 Hide
    s3anister , December 21, 2012 8:52 AM
    techcurious"Google's rumored purchase of Motorola's set-top box business has become a reality: the search engine giant has received $2.35 billion for the sale of Motorola Home."I'm confused.. Is Google buying it or selling it??? As far as I can tell, despite that statement, Google is Selling!


    It's just your usual Zak Islam article, get used to it.
  • 1 Hide
    spentshells , December 21, 2012 11:21 AM
    Xperia you know the restWhat's a set top box?


    Cable box

    Set top box - cable box you place on top of your tv set in the 80's and 90's
  • 0 Hide
    web11 , December 22, 2012 8:06 PM
    It's your DVR cable box. And yeah this article had me scratching my head...
  • 0 Hide
    spentshells , December 22, 2012 10:45 PM
    Because your under 30.