The words "Motorola" and "billions" have hit the same sentence an awful lot lately. First, it was Google
's involvement in buying Motorola Mobility. And now, Arris is set to acquire Motorola's Home Business for $2.35 billion in cash and stock. In the latest blockbuster deal involving the Motorola
name, Arris -- hailed as a "global innovator in broadband media technology" -- agreed to terms with parent company Google in which Arris will snap up Moto's Home Business from Motorola Mobility. Under the terms of the agreement, upon closing of the transaction, Google will receive $2.05 billion in cash and approximately $300 million in newly issued Arris shares, subject to certain adjustments provided for in the agreement, representing an approximately 15.7% ownership interest in Arris post-closing.
Here's what Arris had to say about the deal: "Acquiring Motorola Home will enhance Arris' ability to provide next-generation consumer video products and services, supporting a more comprehensive product offering while also accelerating its ability to deliver a comprehensive set of industry-leading new products for broadband to a wide spectrum of customers. The transaction will increase Arris' patent portfolio and provide a license to a wide array of Motorola Mobility patents."
It remains to be seen what Google's long term strategy for Motorola Mobility is. They've promised not to give Moto phones priority access to updates, and we haven't seen Moto's handsets change dramatically since the takeover. Either way, here's something to put on the ledger.