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[Business] Arris Agrees to Buy Motorola Mobility's Home Business From the WSJ.....
By TESS STYNES
Cable-equipment maker Arris Group Inc. ARRS -0.27% has agreed to acquire Motorola's MSI -0.98% set-top box business from Google Inc. GOOG -0.13% in a cash-and-stock deal valued at about $2.35 billion.
Google has been shopping the unit, one of the largest providers of set-top boxes, for months.
The Internet giant will receive $2.05 billion in cash and roughly $300 million in Arris stock, representing an ownership stake of about 15.7% after the deal's closing, which is expected by the second quarter.
Google bought Motorola Mobility Holdings Inc. for $12.5 billion in May, largely for its intellectual property and smartphone hardware to boost its Android operating system.
Since then it has been downsizing the unit as Motorola's deteriorating financial conditions continue to worry investors. This summer the company said it would cut about 4,000 jobs, or 20% of Motorola's workforce.
"Ever-expanding consumer demand for bandwidth will continue to drive growth across cloud and network technologies we provide that enable innovative home entertainment products and services," said Arris Chairman and Chief Executive Bob Stanzione.
Arris said the acquisition is expected to lead to $100 million to $125 million in annual cost synergies. The deal is expected to add significantly to Arris's per-share earnings in the first year after closing, it said.
Arris shares closed Wednesday at $14.54 and were halted in after-hours trading. Google was down $1.61 at $718.50 after hours.
Write to Tess Stynes at email@example.com
IowaCowboyWant to go back to IowaPremiumReviews:
Re: [Business] Arris Agrees to Buy Motorola Mobility's Home Busi They should also buy the Cisco Scientific Atlanta line and develop a universal set top that can be used on both Motorola and SA systems. As for branding, they should either use the Jerrold or General Instruments branding. I remember back in high school when I lived in Iowa, I had some DCT 2000 boxes with the General Instruments branding.
As for Arris, their modems and EMTAs are top notch.
As for Cisco cable equipment, their stuff is junk in my opinion. I like it when cable systems use Motorola equipment. Where I grew up (Cedar Rapids, IA) had an overbuilder and the incumbent provider (Mediacom) used Motorola where the overbuilder (McLeodUSA now I'mOn communications) used SA/Cisco.
Where I live now (Springfield, MA) has only Comcast and fortunately it's a Motorola system. Where my Grandma lives (Biddeford, ME) has Time Warner NS unfortunately they are a Cisco system.