By Kristin Jones
Cable equipment provider Arris Group Inc. (ARRS) has agreed to
sell around $150 million in shares to Comcast Corp. (CMCSA, CMCSK)
as part of its deal to buy Motorola Mobility's set-top box business
from Google Inc. (GOOG).
The broadband media technology company in December agreed to buy
Motorola Home in a roughly $2.35 billion cash-and-stock deal
expected to expand its capabilities in the next-generation consumer
video space.
Google was expected to receive $2.05 billion in cash and roughly
$300 million in Arris stock, or an ownership stake of around
15.7%.
Arris said Monday that its sale of roughly 10.6 million shares
to Comcast, one of its biggest customers, will reduce the number of
shares issued to Google, and will increase by $150 million the cash
that Google will receive in the deal.
As a result of the share sale, Comcast and Google will each own
around 7.85% of the outstanding Arris shares after closing.
Neither Arris's total payment for Motorola Home nor the total
amount of shares issued by the company will change.
"We are very pleased that Comcast has agreed to make this
significant investment in Arris," said Arris Chief Executive Bob
Stanzione. "We believe this investment by one of our largest
customers is a strong indication of customer support for the
Motorola Home acquisition and its potential to accelerate
innovation to the benefit of the industry and consumers."
The share sale is conditioned on the closing of the Motorola
Home acquisition and is expected to close at the same time.
Arris shares rose 1.6% in after-hours trading to $15.59, while
Comcast Class A shares fell 29 cents to $38.63. Google shares were
up 55 cents at $723.80.
Write to Kristin Jones at kristin.jones@dowjones.com
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