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Google gets tough with Moto, sells off its set-top business to Arris Group for $2.35 billion

Google is getting ready to offload one of Moto's profitable business units, Motorola Home, so that the company can focus more on making awesome phones and tablets.
December 20, 2012

It’s a well-known fact that Google acquired Motorola Mobility, which it did early in the year after taking $12.5 billion out the bank, to gain control of Moto’s rich portfolio of patents.

While some of the patents have been deemed invalid by ITC in the fight against Apple, Google has scored a win elsewhere, as it’s getting ready to offload one of Motorola’s profitable business units, Motorola Home, to Arris Group Inc.

The set-top business unit, according to a Reuters report, will be sold to Arris for $2.35 billion in cash and stock, with Google stands to gain 15.7% ownership of the cable equipment maker. The deal is expected to be completed by Q2 2013.

Analysts said that Google is eager to revamp Motorola by making the company focus more on its mobile phone business. Despite Motorola Home making $3.4 billion in revenues in its latest financial quarter, Google has no qualms about selling the broadband business unit.

We have yet to see the full effect of the Google takeover on Motorola’s hardware lineup, but customers sporting Moto’s Android phones and tablets are seemingly getting faster software updates. What we’re most interested to see is whether or not there will be a Nexus device from Moto in 2013.