Google just announced that it has sold Motorola Home, the broadband unit of Motorola Mobility to Arris, a broadband media technology company that specializes in design, engineering and supply of broadband services for residential and business customers. ARRIS will pay $2.05 billion in cash and approximately $300 million in newly issues Arris shares.
Google has just reported its Q4 2012 earnings, which means that we’re also getting a peek at how the phone-makers at Motorola Mobility are faring as well.
A few days ago Google announced that it was selling the set-top box division of Motorola to ARRIS for a combined stock and cash price of $2.35 billion. This event has triggered a look back at the original purchase of Motorola by Google for a publicized price of $12.5 billion by the folks over at Forbes.
During the analyst conference call discussing telecom manufacturer Arris’ just-announced acquisition of Motorola Home, one of the big topics (to Arris CEO Bob Stanzione’s apparent exasperation) was TiVo’s lawsuit against Motorola Mobility and its owner Google.
In an October court filing, TiVo claimed that Motorola is responsible for “massive production of infringing DVRs
Google’s Q3 earnings just leaked ahead of schedule, and it appears that Motorola revenues accounted for $2.58 billion of Google’s $14.10B revenue in the three-month period ending September 30. $1.78 billion was generated from the mobile segment alone, with $797 million credited to the home segment. In total, Motorola revenues account for 18 percent of Google’s Q3 report.
Google Inc. said that less than half of the $12.4 billion it paid to acquire Motorola Mobility Holdings Inc. was all devoted to patents and technology. Out of the $12.4 billion, $5.5 billion was devoted to patents and “developed technology,” according to what Google wrote in a document with the U.S. Securities and Exchange Commission yesterday.
Today Google announced their Q2 earnings, reporting 21% growth year over year for revenue, to the tune of $10.96 billion. GAAP income was also listed coming in at $2.79 billion, up from 2.51 billion in Q2 of 2011.
As of Q2, Google reports having $43.1 billion in cash reserves and equivalents.
Google has agreed to pay Motorola Mobility an unprecedented $2.5 billion in reverse break-up fees if its $12.5 billion acquisition fails to go through, says a report. Meanwhile, observers are debating the value of Motorola's patents vs. the baggage of its ongoing litigation, weighing the impact on other Android OEMs like Samsung and HTC, and glimpsing an opportunity for Microsoft....
If Google were to make Android proprietary, with devices built exclusively by Motorola, it could earn $10.5 billion in profits by 2015, yet that still may not be worth it, says Piper Jaffray. Meanwhile, Google's Motorola acquisition should bolster Google TV, other analysts say....
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