Google Sells Cable-Box Unit for $2.35 Billion

Cable-equipment maker Arris Group has agreed to acquire Motorola's set-top box business from Google in a cash-and-stock deal valued at about $2.35 billion.

Google has been shopping the unit, one of the largest providers of set-top boxes, for months. The Internet giant will receive $2.05 billion in cash and roughly $300 million in Arris stock, representing an ownership stake of about 15.7% after the deal's closing, which is expected by the second quarter. Google bought Motorola Mobility Holdings Inc. for $12.5 billion in May, largely for its intellectual property and smartphone hardware to boost its Android operating system. Arris said the acquisition is expected to lead to $100 million to $125 million in annual cost synergies.