Google Sold Motorola Mobility To ARRIS

When Google announced that they were acquiring Motorola Home, I thought they would use it as a vehicle into the connected home market.  They then launched the android@home initiative which I think would further cement their position. I held that opinion until last month when they said they have sold Motorola Home to ARRIS for $2.35 Billion in cash and stock.

Google now has a 15.7 percent share ARRIS, an agreement which I think still allows Google to have a say in the direction ARRIS takes Motorola Home and also leave the door open to the connected home market.

“We share a similar vision and strategy with ARRIS for the industry’s migration to IP.  The combination of our solutions, expert technologists and roadmap promises to transform how service providers deliver the smart, simple connected home to consumers throughout the world,” said Motorola Mobility’s executive VP  Marwan Fawaz.

ARRIS said acquiring Motorola Home will enhance its ability to provide next generation consumer video products and services. ARRIS explained that the move also expand its core customer base and limits its liability in the case of IP damages from lawsuits.  Motorola Home generated revenues of $3.4 Billion for the trailing four quarters ended September 30 2012.

“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 environment that service providers need and that their consumers crave,” said Motorola CEO, Dennis Woodside.