Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, December 21, 2012

Article Excerpt

PLEASE NOTE: This is our last Hotline for 2012. Our next Hotline will go out on Friday, January 4, 2013. GOOGLE INC., $715.63, Nasdaq symbol GOOG, is selling its Motorola Home division, which makes TV set-top boxes and modems for cable companies. The company acquired this business as part of its $12.5-billion purchase of cellphone maker Motorola Mobility Holdings in May 2012. The buyer is Georgia-based Arris Group Ltd. (Nasdaq symbol ARRS). When the deal closes in the first half of 2013, Google will receive $2.05 billion in cash plus $300 million of Arris’s common shares. That will give it a 15.7% stake in Arris. The company mainly bought Motorola Mobility for its patent portfolio, which will help it fend off lawsuits related to its Android operating system for mobile devices, so it makes sense to sell the set-top box business. Google will probably use the cash from the sale to develop new Android-powered smartphones and tablet computers. The rising popularity of these…