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Google to sell part of Motorola for $2.35 billion

Google $2.35 million us dollars, MOTOROLA mobile TV set-top box business reduce load, the Internet search giant earlier this year, when it is finished in its history a biggest takeover.
Announced on Wednesday night of cash and stock purchase MOTOROLA set-top box department will turn over to a relatively small group, hope to be a bigger player provide video, high-speed Internet equipment supplier Arris company. Investors move praised, Arris the stock of the company nearly 17%.
Google's decision, abandon set-top box take seven months later, in California mountain view, in the $12.4 billion to buy MOTOROLA mobile holding company control.
STB never a big allure of Google, although the company has interested in try to tube to television, so it can sell more advertising service.
Google precious MOTOROLA mobile patent more than 17000 its portfolio. These forms of nuclear Arsenal, it can be used in a fierce battle the outbreak of intellectual property of intelligent mobile phone and tablet PC has become a hot commodity in recent years.
MOTOROLA also makes smart phones and tablet PC manufacturing business, Google will retain, despite lingering concerns about Wall Street to Google's profit margins shrink, may alienate other equipment manufacturers, the use of the company's Andr oid software hardware.
In addition to not naturally suitable for Google, MOTOROLA set-top box has also become a potentially costly legal responsibility. Digital video recorder pioneer TiVo company is seeking billions of dollars in damage compensation lawsuit, accused of infringement of the patent right, MOTOROLA box. These claims to test is scheduled for next year in Texas federal court.
Although they refused to provide details, ARRIS group executives told analysts in a conference call on Wednesday, said Google still must cover the most the bill any damage or settlement, TiVo company may win.
TiVo company has consultation about $10 billion merger settlements of the other patent infringement cases, brought to other companies, including Dish network company, AT&T and Verizon Communications.
Suggest selling MOTOROLA set-top box department requires that Google $205 million dollars in cash and 3 million yuan worth of ARRIS stock. If the deal for regulatory approval, ARRIS group prior to the end of June is expected to take over the department.
Google will cut their spending, this may please investors focus on MOTOROLA drag the company's profits. Arris company said, MOTOROLA set-top box department of about 7000 people work. Google by September this year about 53500 employees, including 17400 MOTOROLA, its business. More than 20000 people have been at the Motorola mobile (Motorola Mobility), Google become the owner of the late may, but salary slashed effort to cut losses already pile inside, Motorola as its lost market share once a popular mobile phone as part of the apple and samsung electronics.
But MOTOROLA set-top box business has been making money, according to Google, but the company did not say how many.
In the past year, in the September, MOTOROLA set-top box business produced an income of $3.4 billion. This makes it Arris company group, the total $13 billion, twice the size of the income. ARRIS group company, this is based on savoie,, Georgia, won the $39000000 last year, through nine months after the pain for 2011 years of nearly 13 billion dollars in damage.
"This is a big leap Arris company CEO Bob Stanzione said," in Wednesday's conference call.
Arris company's shares rose $2.46, $17 on Wednesday after plate business, Google shares fell $2.61, $717.50.
The other half of the old MOTOROLA solutions company, MOTOROLA, still is an independent company. Headquartered in Illinois's shaoxing fort, it sells for government and enterprise customers to provide communication equipment.




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