Telecom equipment manufacturer Arris Group has just announced that it will acquire the Home division of Motorola from Google, for a total of $2.35 billion in cash and stock. The sale of the division had been predicted from basically the day Google announced its purchase of Moto, and in recent weeks was all but confirmed.

As part of the deal, Google will gain a 15.7% share of Arris Group. The Motorola Home division encompasses products like set top boxes, broadband modems, landline phones, and (apparently) baby monitors.

While some have criticized Google's decision to sell off Moto's modem and TV manufacturing arm, it makes complete sense: even a wide expansion of Google Fiber wouldn't require a $2 billion+ set top box business, and I doubt Google has any interest in manufacturing modems for the likes of Comcast or Verizon. Or baby monitors.

Motorola CEO Dennis Woodside had this to say:

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 environments that service providers need and that their consumers crave.

The deal is expected to wrap up in mid-2013.

Arris via The Verge

David Ruddock
David's phone is whatever is currently sitting on his desk. He is an avid writer, and enjoys playing devil's advocate in editorials, and reviewing the latest phones and gadgets. He also doesn't usually write such boring sentences.

  • IncCo

    WHY?? Just integrate Google TV into it !

    • http://www.androidpolice.com/author/ron-amadeo/ Ron Amadeo

      Sign #423 that Google doesn't care about Google TV. I'll take the product seriously when they do.

      • SetiroN

        You don't need the huge Motorola Home division to just produce 1 or 2 specific products. It makes no business sense, it's much better to earn BIllions from it and outsource production.
        Just like they were going to sell the Nexus Q without Moto's aid, they're perfectly able to produce a Google TV box whenever they want starting from scratch; converting the existing Motorola stuff is pointless, they don't need all the "legacy" cable stuff, especially if keeping it requires to maintain businesses that have nothing to do with the rest of the company (baby monitors, landline telephony equipment...).
        So whether they want to push and support Google TV or not, Motorola Home isn't part of it.

        • http://twitter.com/ToysSamurai Toys Samurai

          >> You don't need the huge Motorola Home division to just produce 1 or 2 specific products.

          One word: Apple.

      • Bob G

        or they made a deal with the Arris Group that they will be the first ones to work together with Google when Google Fiber and Google TV eventually become one and dominate the world.

      • Eric Liou

        Google should do it before Apple does. Tim Cook's just said they are going to focus on TV.

        • armshouse

          I actually look forward to Apple making a smart TV. Thisll push the idea of smart TVs into the forefront of peoples minds, and Google will piggyback off their marketing. Apple are a lot better and building interest than Google

      • Freak4Dell

        Yup. This is pretty much confirmation that Google TV will never be a serious player in whatever market they tried to inject it into. They had a huge chance here with the expertise that Motorola has in making STBs and DVRs, but they've gone and screwed it up.

  • dsass600

    At first I thought it said "Google Sells Motorola." Phew!

    • JG

      lol, I had the same reaction....

  • http://www.androidpolice.com/author/ron-amadeo/ Ron Amadeo

    Good. All of this cable stuff depends on cable companies, and they are openly hostile to any form of innovation, especially from Google.

  • http://twitter.com/Twitteninja ZZ

    Hmm, is there definitive proof that the Landline phones were part of the Home division? Seems like that could fit in either division.

    • http://www.androidpolice.com/ David Ruddock

      Landline phones by definition are a home device. I'm going with "almost definitely."