According to Bloomberg both Pace and Arris are bidding for a slice of Google business-- Motorola Home Business, the company segment making STBs and equipment for cable TV providers.

Pace confirms the report, saying "discussions with Google are currently at a preliminary stage and there is no certainty as to whether any agreement regarding any transaction will be reached." Due to the size of Motorola Home Business relative to Pace, the deal would bring about a "reverse takeover."

The British STB maker would find a deal with Google useful-- it still needs to recover from 2011 profit warnings following supply chain damage caused by the Thailand floodings and the earthquake and tsunami in Japan.

Motorola Home Business came to Google as part the $12.5 billion acquisition of Motorola Mobility. The search giant seeks to sell the STB maker since it prefers to concentrate resources on the high-end smartphone business. Back in August 2012 it cut 4000 Motorola workers and closed around 30% of its 90 facilities.

Bloomberg sources say Google might get around $2bn for the unit, even if it comes with complications-- ongoing patent-infringement litigation with TiVo.

Go Google Said to Get Best Bids for Unit from Pace, Arris (Bloomberg)