If you were mesmerized by Apple news this week, you might have missed the scoop from The New York Post suggesting that Google is putting the Motorola set-top business on the chopping block. So far it doesn’t appear that anyone else has confirmed the report, but no one’s terribly surprised by it either. Google has enough of an integration mess on its hands without adding set-tops to the list. And while I speculated on some of the potential advantages for Google last year, I would have been more surprised than not to see the company try to make a go of it in cable.
So with that out of the way, who could potentially be interested in the Motorola cable portfolio? It’s important to note that the products include a lot more than just set-tops. There’s also encoding, content management, security, and access network technology. (Full Disclosure: I still do some contract work for the network infrastructure portion of the business.) Jeff Baumgartner has speculated here and here about who might be interested. The potential suitors mostly differ depending on which set of Motorola assets we’re talking about, but there are couple that might be willing to take a flyer on the whole bag of tricks, namely Arris and Ericsson.
Meanwhile, Jeff mentioned one company that had me spitting coffee across the table. He wasn’t talking about an acquisition, but he did suggest TiVo might be in a position to help fill in the gap left if Motorola exited the set-top biz. Yes, TiVo. After all the years of fighting for toehold in the cable industry (and even times when Motorola at least unofficially considered acquiring the company), the idea that TiVo might come out on top here is irony at its finest. There’s nothing to say that will actually happen, but even that there’s editorial consideration of the idea has me chuckling and shaking my head. Here’s what Jeff had to say about TiVo:
It’s been a painful and sometimes downright ugly process, but TiVo’s cable strategy is paying dividends as it sees subscribers rise to new levels thanks to MSO partnerships. Cable’s starting to take a real shine to TiVo’s UI and over-the-top video capabilities. Also, TiVo gives cable a line into the retail market.
For a look at the other side of the coin, check out what Motorola has to say on its blog about its business and the future of the set-top.