| By Maureen O'Gara |
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| December 20, 2012 09:22 AM EST |
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4,392 |
Google is going to sell Motorola's set-top box business to the Arris Group, a cable equipment maker.
The cash-and-stock deal is valued at about $2.35 billion, which should repay Google part of the $12.5 billion it spent on MMI supposedly for its IP.
Google has been shopping the business, one of the biggest set-top box suppliers, for months.
It is supposed to get $2.05 billion in cash and roughly $300 million in Arris stock, a 15.7% position.
It estimates the deal will close in Q2.
Meanwhile, Google has been downsizing MMI.
Arris CEO Bob Stanzione expects to be compensated by "ever-expanding consumer demand for bandwidth that will continue to drive growth across cloud and network technologies." He figures to realize $100 million-$125 million in annual cost synergies and add significantly to his EPS the first year after closing.
Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara
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