Seeking Alpha

Google (GOOG) is selling Motorola Home for $2.35B ($2.05B in cash + $300M in stock) to Arris...

Google (GOOG) is selling Motorola Home for $2.35B ($2.05B in cash + $300M in stock) to Arris (ARRS). The division, which sells set-top boxes, infrastructure gear, and other hardware to pay-TV and broadband providers, had revenue of $3.4B in the 4 quarters ending Sep. 30. Arris, which closed with a market cap of just $1.65B, is halted. The deal will be "significantly accretive" to Arris' EPS and give Google a 15.7% stake in the company, which will probably have to raise a lot of debt to finance the purchase. (previous)
Comments (6)
  • gmmpa
    , contributor
    Comments (490) | Send Message
     
    It is probably a good decision for Google to break off the set top business from Motorola mobile. Its needs to focus more on core businesses. I believe mobile will be one that will become more important when consumers start excepting the used of mobile devices for financial transactions and replacements for credit cards. Google should make sure it positions itself to be able to shape the direction of the services in the future.

     

    20 Dec 2012, 12:36 AM Reply Like
  • Morrison International Acco...
    , contributor
    Comments (470) | Send Message
     
    Google is getting on my nerves with all of this action. Companies do one, maybe two and rarely more things well. Google is starting to buy companies to sustain growth that was once genuine.

     

    They better come up with something soon, the online advertising space is getting "commoditized" and new entries are on the way at the speed of light.
    20 Dec 2012, 01:51 AM Reply Like
  • Stockgal87
    , contributor
    Comments (355) | Send Message
     
    Google is breaking up Motorola and getting what they can, now that the patents have proven to have been worthless to stop Apple.

     

    Another great American company goes down the tubes.
    20 Dec 2012, 02:29 AM Reply Like
  • Morrison International Acco...
    , contributor
    Comments (470) | Send Message
     
    The great thing of America is that companies like Google are allowed to fail (if they are not a bank or auto company). When looking at Japanese tech companies, many were founded over 50 years ago and seem to be propped up only by ridiculous M&A or GOVT help.
    20 Dec 2012, 02:52 AM Reply Like
  • $CLU
    , contributor
    Comments (207) | Send Message
     
    Agree with Morrison here.
    If we didn't let failed companies die then we would have zombie like corporations that exist only to sell the same tired product line (probably via outsourced manufacturing) and consist mostly of attorneys who are tasked with stamping out new competition. All on the dole of the government.
    20 Dec 2012, 07:26 AM Reply Like
  • kmi
    , contributor
    Comments (4000) | Send Message
     
    I'm sure Google has something in mind for its Google TV product that we don't know, but somehow I think that when Google TV matures they will regret divesting the set top business. Or perhaps they will buy it back...
    20 Dec 2012, 09:57 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|