Google Sells Motorola Set-Top Box Division

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

On Wednesday, Arris Group (NASDAQ: ARRS  ) announced that it has entered into an agreement to purchase the Motorola set-top cable box division, known as "Motorola Home," from Google (NASDAQ: GOOGL  ) for $2.35 billion.

Though the acquisition is described as "cash-free, debt-free," Arris will pay Google $2.05 billion in cash at closing, and deliver $300 million worth of newly-issued Arris shares, giving Google ownership of about 15.7% of the company in exchange for Motorola Home. Arris will finance the cash portion of the buyout with debt financing from Bank of America (NYSE: BAC  ) and Royal Bank of Canada (NYSE: RBC  ) .

Arris noted that acquiring Motorola Home will more than triple its annual revenue stream, to approximately $4.7 billion, and permit cost savings of between $100 million and $125 million post-merger. In addition to the set-top box business itself, the parties noted that "the transaction will increase Arris's patent portfolio and provide a license to a wide array of Motorola Mobility patents."

The transaction is expected to close in Q2 2013. Shares of Arris opened up 5.4% this morning, and are still up 5% as of this writing, at $15.27. Shares of Google opened up 0.4%, and are still up 0.3%, at $722.42.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2165098, ~/Articles/ArticleHandler.aspx, 5/24/2016 9:33:31 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Rich Smith

I like things that go "boom." Sonic or otherwise, that means I tend to gravitate towards defense and aerospace stocks. But to tell the truth, over the course of a dozen years writing for The Motley Fool, I have covered -- and continue to cover -- everything from retailers to consumer goods stocks, and from tech to banks to insurers as well. Follow me on Twitter or Facebook for the most important developments in defense & aerospace news, and other great stories besides.

Today's Market

updated 17 minutes ago Sponsored by:
DOW 17,706.05 213.12 1.22%
S&P 500 2,076.06 28.02 1.37%
NASD 4,861.06 95.27 2.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/24/2016 4:00 PM
ARRS $23.22 Up +0.54 +2.38%
Arris Group, Inc. CAPS Rating: ****
BAC $14.68 Up +0.21 +1.45%
Bank of America CAPS Rating: ****
GOOGL $733.03 Up +15.78 +2.20%
Alphabet (A shares… CAPS Rating: *****
RBC $55.38 Up +1.17 +2.16%
REGAL-BELOIT Corp CAPS Rating: *****