Google wants to put Motorola’s TV set-top box business up for sale. According to the New York Post, the search giant is bringing down the gauntlet on Motorola Mobility’s business even before the acquisition is finalized. It’s like inheriting that one relative you don’t like. The company has apparently hired Frank Quattrone’s investment bank, Qatlyst Partners and Barclays Capital to assist with vending the unwanted technology.
The news is presented without citing sources, but apparently Google CEO Larry Page has had a change of heart from comments he made last year about the set-top box business playing a role. Google is reportedly making a quiet push to have an even bigger presence in consumer homes, possibly through a rumored “entertainment device,” and from the sounds of it Motorola’s business isn’t needed.
“Software is the value, not the hardware,” said one set-top box executive.
As such, companies are implementing user-friendly software into devices like TVs and even home video game consoles. Set-top boxes have been on the decline with newer technologies – such as integrated TV and Web streaming – on the rise. In addition, kiosks like RedBox offer consumer an easy option for quick and cheap movie rentals.
Google will purportedly shop the business from anywhere between $2.5 and $4 billion. Of course, the company refused to comment on the rumor. $2.5 to $4 billion, Google? That seems like an awful lot for a technology many companies are trying to move on from.
[via NY Post]