|By Maureen O'Gara||
|December 20, 2012 09:22 AM EST||
Google is going to sell Motorola's set-top box business to the Arris Group, a cable equipment maker.
The cash-and-stock deal is valued at about $2.35 billion, which should repay Google part of the $12.5 billion it spent on MMI supposedly for its IP.
Google has been shopping the business, one of the biggest set-top box suppliers, for months.
It is supposed to get $2.05 billion in cash and roughly $300 million in Arris stock, a 15.7% position.
It estimates the deal will close in Q2.
Meanwhile, Google has been downsizing MMI.
Arris CEO Bob Stanzione expects to be compensated by "ever-expanding consumer demand for bandwidth that will continue to drive growth across cloud and network technologies." He figures to realize $100 million-$125 million in annual cost synergies and add significantly to his EPS the first year after closing.
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