Google sells Motorola TV set-top business for $2.35 billion

Wed Dec 19, 2012 7:30pm EST
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By Alexei Oreskovic

SAN FRANCISCO (Reuters) - Google Inc agreed to sell set-top TV box maker Motorola Home to Arris Group Inc for $2.35 billion in cash and stock, the companies said on Wednesday.

The transaction is expected to close by the second quarter of 2013, subject to regulatory approvals.

Google will have a roughly 15.7 percent ownership interest in Arris, a Suwanee, Georgia-based cable equipment maker, after the deal.

Shares of Arris jumped nearly 17 percent to $16.99 in afterhours trading on Wednesday following the news. Google's stock was down $1.61 at $718.50.

The companies said the deal would increase Arris' patent portfolio and provide a license to a "wide variety" of Motorola Mobility patents but did not provide details.

Google had been expected to sell the set-top business, following a disclosure last week by British TV decoder maker Pace Plc that it had made an offer to Google. Arris had also been cited among the bidders in media reports.

Google acquired the set-top box maker in May as part of its $12.5 billion purchase of Motorola Mobility, a deal motivated by a desire to snap up Motorola's large portfolio of communications patents.

Since acquiring Motorola, Google has moved to revamp the company's money-losing mobile phone business, while appearing less interested in the set-top business.   Continued...

The Google logo is seen as Google Executive Chairman Eric Schmidt speaks at a promotional event for the Nexus 7 tablet in Seoul September 27, 2012. REUTERS/Kim Hong-Ji