December 20, 2012 - 19:23 AMT
Google sells Motorola's set-top business in $2.35 bn deal

Google has sold Motorola Home's set-top business in a deal worth $2.35 billion (£1.4bn), Digital Spy said.

Arris Group purchased the assets with cash and stock in a move that sees Google acquire a 15.7% stake in the broadband provider.

Arris, which will use the fruits of the investment to improve the networking equipment it offers to cable providers, also received a collection of Motorola Mobility patents as part of the agreement.

"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," said Motorola CEO Dennis Woodside.

Google has been trying to offload Motorola's set-top business for some time and is said to have appointed Barclays to ensure it received upwards of $2 billion for it.