Comcast (Nasdaq: CMCSA) said Monday that it agreed to spend $150 million to buy a 7.85 percent stake in cable technology vendor Arris (Nasdaq: ARRS).
The move comes less than one month after Arris struck a deal to buy Motorola Mobility's set-top business from Google (Nasdaq: GOOG) for $2.35 billion. Arris said the Comcast investment will allow it to increase the amount of cash it will pay Google by $150 million and that it will reduce the amount of stock issued to Google for the Motorola Mobility assets. Google and Comcast will each own about 7.85 percent of Arris stock, the company added.
Comcast has a history of buying or investing in technology vendors whose products it deploys and cable networks that are carried on its systems. The MSO, which acquired NBCUniversal in 2011, also owns stake in TiVo (Nasdaq: TIVO), video-on-demand advertising technology provider BlackArrow, home automation vendor iControl, targeted advertising technology provider Visible World and home networking technology supplier Entropic Communications.
Arris announced last week that it had developed a home video gateway that could be used to deliver Comcast's Xfinity X1 service. Comcast hasn't yet said when it may deploy the Arris gateways.
"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," Arris CEO Bob Stanzione said in a prepared statement.
Arris stock jumped Tuesday morning on news of the Comcast investment, with its shares trading at $15.89, up 55 cents, or 3.6 percent, at 10:30 a.m. ET. Comcast stock was trading at $39.08, up 16 cents, or 0.41 percent.
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