Google has successfully divested itself of Motorola‘s cable and internet box business to manufacturer ARRIS for $2.35 Billion. One of the biggest brands in the cable box business, Motorola was acquired by Google last year in a deal that was much more about its cell phone business than any other part of its portfolio ARRIS acquires the customer base (including, one would assume, contracts for Google Fiber), but more importantly its patent portfolio, which will be the primary driver of revenue as the cable industry shifts from linear to IP-based delivery.
“Our Home business has been a vibrant part of Motorola Mobility’s portfolio, innovating while delivering strong financial performance,” said Dennis Woodside, Chief Executive Officer of Motorola Mobility, the Google subsidiary that is the parent of Motorola Home. “The industry faces its biggest technology transformation, and together ARRIS and Motorola will be able to accelerate related innovations such as the introduction of the IP Connected Home environments that service providers need and that their consumers crave.”
“We share a similar vision and strategy with ARRIS for the industry’s migration to IP. The combination of our solutions, expert technologists and roadmaps promises to transform how service providers deliver the smart, simple connected home to consumers throughout the world,” said Marwan Fawaz, the Executive Vice President of Motorola Mobility who leads Motorola Home.
Google likely didn’t wish to invest in the R&D expenses associated with totally new technologies, especially when they exist outside its core businesses. Assuming Google they got a preferable rate on supplies for Google Fiber, the company should be in very good shape for a long time to come.