Google to sell part of Motorola for $2.35 billion
Google will also pare its expenses, something likely to please investors concerned about Motorola being a drag on the company's earnings. Arris said about 7,000 people work in Motorola's set-top division. Google ended September with about 53,500 employees, including 17,400 who worked on the Motorola side of its operations. More than 20,000 people worked at Motorola Mobility when Google became the owner in late May, but the payroll was slashed as part of an effort to pare the losses that have been piling up within Motorola as its once popular cellphones lost market share to Apple Inc. and Samsung Electronics.
But Motorola's set-top business had been making money, according to Google, though the company didn't say how much.
In the past year ending in September, Motorola's set-top operations generated $3.4 billion in revenue. That makes it twice as big as Arris Group, whose revenue totaled $1.3 billion during the same period. Arris Group, which is based Suwanee, Ga., had earned $39 million through the nine months of last year after suffering a loss of nearly $13 million for all of 2011.
"This represents a great leap forward for Arris," CEO Bob Stanzione said during Wednesday's conference call.
Arris' stock surged $2.46 to $17 in extended trading Wednesday while Google's stock dipped $2.61 to $717.50.
The other half of the old Motorola Inc., Motorola Solutions Inc., remains an independent company. Based in Schaumburg, Ill., it sells communications equipment to government and corporate customers.