Motorola Buys Video Tech Company Terayon

Motorola has announced it will spend $140 million to acquire video technology company Terayon to boost its video capabilities.

The world’s second largest mobile phone maker Motorola announced that it will buy Terayon Communications Systems for about $140 million in a bid to boost its video technology offerings. Terayon’s technology would let television service operators stream video to users based on regional and local interest, and enables operators to insert ads and graphical overlays on the feeds.

“Operators around the world are looking for a digital video core that will maximize bandwidth and enable the delivery of revenue-generating services,” said Motorola Connected Home Solutions President Dan Moloney, in a statement . “The acquisition of Terayon will enhance Motorola’s end-to-end portfolio for the delivery of next-generation services such as targeted advertising and program insertion solutions.”

Perhaps Yerayon’s best-known product is CherryPicker, which enables cable operators to insert, manage, and schedule digital advertisements on different channels, as well as independently manage billing for those ads. Terayon also develops bandwidth optimization tools and products which deliver localized content feeds to viewers.

The move is the latest in a series of acquisitions designed to bolster Motorola’s network technology and home video businesses—in addition to making oodles of cell phones, Motorola also manufactures set-top boxes and DVRs used by many cable and television service operators. Last year, Motorola acquired Tut Systems and Netopia; Motorola is positioning its new portfolio of technologies as tools to help cable operators shift from analog to digital video systems.