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Networking - Tuesday, July 25, 2006

Motorola Paid $185M For Broadbus, Says Source

Dow Jones is reporting the rumor that Motorola paid $185M cash for the video-on-demand company Broadbus, which will become part of Motorola's connected home solutions division.

Boxborough, MA.-based Broadbus raised about $57M in VC since its founding in 1999. Its investors include Battery Ventures, Charles River Ventures, Comcast Interactive Capital, Wolf Ventures and STAR Ventures. After the deal closes, the investors will realize a return of between 3 and 5 times their invested capital. There's not a whole lot of sizzle in that bacon if you ask us. Time and again the lessons of video on demand seems to be that startups have been way early to market and have not proven to be lucrative investments.

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