Google wants to sell Motorola Home Business unit

Google is interested in selling a division of Motorola Mobility that sells set-top boxes and cable equipment to television providers, according to two anonymous sources who spoke with Bloomberg. Google has hired Barclays PLC to find buyers for the Motorola Mobility Home Business unit.

The sale is in very early stages, and the Home Business unit could possibly go for about $2 billion, according to one of Bloomberg's anonymous sources. In 2009, before Google bought Motorola Mobility outright, Motorola tried to sell the Home Business unit for more than $4 billion.

Google is probably shifting the focus of recently acquired Motorola Mobility to the smartphone market in its ongoing competition with Apple's iPhone. Motorola Mobility's acquisition by Google was completed in May 2012 for $12.5 billion. Motorola Mobility, in addition to making a range of Android smartphones, possesses a large library of more than 17,000 patents, and the acquisition was seen as a response to Google losing an auction of Nortel Networks Corp. patents to a group comprised of Apple, Microsoft, Research In Motion and others.

Earlier this month, Google announced that it would cut 4,000 Motorola Mobility employees and close a third of the independent company's locations.

Source: Bloomberg

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8 Comments

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That's a good news for us. We are direct compitatior of motorola STB and we were all the time worried that if google puts its weight behind STB business we will have trouble maintaining our world dominance in STB business. This is a welcome move for us, we will see our stock surging up and also hope that some of motorolas clients will jump on our STB due to unstability in motorola.

Dumb move. Seriously, Google could have seriously leveraged it to make some good Google TV-fueled middleware to disrupt the cable industry. Seriously.

And the gutting of Motorola has begun. Tell me this wasn't expected? Google overpaid for some motorola phone patents and that's it, all this talk about keeping them around to make phones and stuff is just PR. 2013 will probably be the last time we see motorola phones, I don't think the new intel based device is going to go anywhere.

GP007 said,
And the gutting of Motorola has begun. Tell me this wasn't expected? Google overpaid for some motorola phone patents and that's it,

To be fair, Google were very clear about this the whole time. Everyone knew it was for the patents.

Majesticmerc said,

To be fair, Google were very clear about this the whole time. Everyone knew it was for the patents.

to be fair? google was very clear about this the whole time? say what? stop lying to yourself and everyone else. point me to where google said that after the acquisition that they would sell off parts of the acquired company?

not because people knew this was eventually going to happen doesn't mean google was "very clear" about it.

ctrl_alt_delete said,

to be fair? google was very clear about this the whole time? say what? stop lying to yourself and everyone else. point me to where google said that after the acquisition that they would sell off parts of the acquired company?

not because people knew this was eventually going to happen doesn't mean google was "very clear" about it.

Calm down friend, I didn't mean that they were clear about selling parts of the company off, I mean that they were clear about wanting the company for its patents, rather than its manufacturing capabilities. They stated that they wanted not to interfere with the day-to-day running of Motorola Mobility, so why buy the company if you're not going to give it any special treatment to make it more profitable (something that they could definitely do by giving them more exclusive access to Android, as a single example)? This is why...

http://blogs.wsj.com/deals/201...-its-all-about-the-patents/

Even if they haven't explicitly mentioned the fact that it wasn't for the patents, it's pretty obvious from their actions, particularly the timing, given that the deal was made just when all this patent nonsense was starting to make it into the news.