Google Fields Bids from Arris and Pace on Motorola STB Business
December 17, 2012
As the Google TV platform fails to gain traction, Google is looking to sell its Motorola Home Business, which is responsible for building set-top boxes for cable providers. The Motorola cable box business was acquired by Google for $12.5 billion last year. According to Bloomberg, Google has received multiple offers, the most compelling coming from Arris Group Inc. and Pace Plc. Google reportedly wants to sell in order to focus on its high-end smartphone business to ramp up competition with Apple.
“A deal has a 50-50 chance of being announced by year-end or postponed because of a complicated financing structure that involves Google retaining some equity and the unit’s patents,” notes the article.
Google TV was introduced in 2010 and the company had high hopes for the platform. “Google Chairman Eric Schmidt even predicted late last year that the ‘majority’ of TVs seen in stores in 2012 would run the Google TV platform — a prediction that did not come true,” writes Apple Insider in a related post.
And while Google’s interest in TV seems to be waning, Apple’s seems to be growing. CEO Tim Cook recently said that the television is an area of “intense interest” for Apple. Rumors suggest Apple could be interested in creating a “full-fledged television set, or a more enhanced version of its current Apple TV set-top device, or both,” writes Apple Insider.
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