Merging the world's two largest set-top makers, Arris' $2.1 billion acquisition of Pace offers insulation from a volatile U.S. pay-TV market, as well as the unpredictable revenue streams of the disparate CPE product cycles, analysts say.
Set-top maker Arris has agreed to acquire its competitor Pace for $2.1 billion in stock and cash. The deal will provide Arris will an entry into the satellite business as well as beef up its customer base. The newly merged company will be incorporated in the U.K. but its headquarters will remain in Suwanee, Ga.
Charter Communications and Arris have jointly purchased cloud TV interface company ActiveVideo for around $135 million.
With Arris expecting its financials to endure a roller-coaster 2015 thanks to big ongoing mergers among its top clients, U.S. pay-TV operators, the technology company is thinking about a big deal of its own.
Arris reported a 6 percent rise in fourth quarter revenue to $1.26 billion, beating analysts' consensus forecast. However, during the telecom technology giant's Q4 earnings call Wednesday, news of its fourth-quarter performance took second stage to what the company predicts will be a very down-and-up 2015.
The broadband customer premise equipment (CPE) market is set to go out with a bang in 2014, with ABI Research forecasting that worldwide broadband CPE shipments are expected to reach 151.9 million.
As anyone involved in the launch of HD a decade ago can tell you, getting a new resolution standard into the consumer mainstream isn't easy. And once again, we are embarking on an epic resolution upgrade quest, with the industry in the early stages of adopting 4K/Ultra HD. As consumed as we are with mega-mergers and OTT disruption, we all have to wrap our heads around 4K, because it's really happening.
As it aggressively seeks to grow its carrier-grade Wi-Fi footprint by building in a separate SSID signal into the modems of its residential subscribers, Comcast has purportedly offered its customers the ability to opt out of the program.
Time Warner Cable has announced the completion of its all-digital "Maxx" upgrades in New York and Los Angeles, with 7 million of its customers getting faster broadband speeds and fancy Arris-made DVRs.
Technology company Arris posted 32 percent growth in year-over-year revenue to $1.4 billion in the third quarter, resulting in a profit of $54.6 million and earnings per share of 81 cents that beat analysts' forecast of 72 cents.