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Rumors Of A Google Spinoff Of Moto's TV Biz Rise Again

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Aug 8, 2012.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Rumours of a Google spinoff of Moto's TV biz rise again | Rapid TV News (click for full article)

    "Michelle Clancy | 08-08-2012

    Rumours of a Motorola Home spinoff have dogged the $12.5 billion Google-Motorola Mobility acquisition since it was announced a year ago, but a new report indicates that the Intternet search giant will soon indeed put the TV division up on the block.


    Unnamed sources have told Light Reading Cable that while no formal plans have been determined, Google has retained Barclays Capital to manage the auction and sale should it occur, which could happen as early as this fall.


    Google is looking to gain $2 billion out of the sale, the sources said, which could help Google recoup the shortfall between the cost of the Moto acquisition and the value of the patents for which it was acquired. Those patents represent $5.5 billion in intellectual property and are central to future development of the the Android mobile operating system.


    The Moto Home division builds set-top boxes, cable modems, gateways, video compression software and more for pay-TV operators. Despite the ongoing investment in the connected home on the part of service providers, Google has little experience with the role of infrastructure vendor, and, arguably, Moto is plateauing in its bread-and-butter market: North American cable STBs. It maintains an overall No. 2 position in overall STB revenue, according to Infonetics Research.


    There has been speculation that Google could leverage Motorola's incumbent position in U.S. homes to bolster Google TV, which can be integrated into connected televisions and STBs. However, it is unlikely that Motorola's operator customers would be supportive of such a strategy."
     
  2. CatfishRivers

    CatfishRivers Well-Known Member

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    Google selling off Motorola set-top box unit? Here's why it shouldn't | ZDNet (click for full article)

    "Just a few months after the deal closed, Google is reportedly already planning to break up Motorola Mobility and sell off some parts, according to a memo from Light Reading Cable.


    In the memo, LRC editor Jeff Baumgartner writes that Google is planning to sell of the set-top box unit, in particular, as the bidding process would get started in September with hopes for a deal completed by the end of the year:


    "Multiple industry insiders and people in cable M&A circles confirm that Google has not yet started the formal sales process for the Home division, which makes and sells cable modems, set-tops, video processors, edge QAMs, cable modem termination systems (CMTSs) and video navigation software. However, there's strong consensus that Google will put Motorola on the block, though there's some variance on when the process will officially get underway. Barclays Capital is rumored to be the banker Google has hired for the sale."


    This is disconcerting (and unlikely) for a few reasons, most of which center around Google TV. Here's why Google probably won't (or at least shouldn't) get rid of this important division of Motorola just yet."
     
    Last edited: Aug 8, 2012
  3. CatfishRivers

    CatfishRivers Well-Known Member

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    Why Google is going to sell Motorola's set-top box biz — Online Video News (click for full article)

    Aug 30, 2012 - 12:03PM PT

    BY Janko Roettgers

    "Motorola's set-top box business was supposed to be the silver bullet for Google TV, helping to bring the smart TV platform into millions of homes. So why has Google hired an investment bank to sell the unit, and what does this mean for Google TV?"
     
    Last edited: Aug 30, 2012

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