Motorola announced that it plans to acquire digital TV equipment maker Terayon for $140 million, or about $1.80 a share. Terayon generated $76.6 million in revenue during 2006, down from $90.7 million in revenue for 2005 and $150.5 million in 2004. At its peak in 2000, Terayon's stock traded at $142 a share. Terayon has been soliciting takeover bids for a few months now, and attracted suitors like Scientific Atlanta, Cisco and the eventually a winning bid from Motorola. Terayon's founder left the company in 2004 after a number of shareholder lawsuits and federal probes into the company's accounting practices, according to a report from MarketWatch.
Motorola's most recent TV-related acquisitions during the past year were set-top box maker Kreatel, CPE maker Netopia, switched video architecture developer Vertasent and Tut Systems.
For more on the Terayon acquisition:
- see this article from MarketWatch