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.