In what it claims is a scoop that confirms that the TV set-top box is on its deathbed, The New York Post is reporting that Google is looking to abandon the STB business it will inherit from Motorola Mobility before it finally closes on the $12.5 billion acquisition.

The reports which have been disdained by the search giant—“We don’t comment on rumor (sic) or speculation,” it quoted a Google spokeswoman saying —would effectively question Google’s entire TV strategy, removing a central plank in its ambition to be at the heart of living rooms.

However, it always remained unclear as to what part legacy boxes and technologies would play in the Moto division once taken on board by Google who is still bruising from the relative failure of the Google TV project, mainly down to the lack of cost-effective supplier of enabling STBs.

Just as the rumour mill was circulating, Google quietly announce that it was launching Google Play, a rebranding of its Android Market to enable users to access and buy content, including video, in the cloud. “It’s how you buy and experience digital entertainment on your Android device and any web browser on any computer,” the company commented. The service will allow users to rent thousands of films including new releases and HD titles

Despite the sniffy refusal to speculate on what may be happening, leading analysts have already begun to discuss the reality of Google ditching Motorola Mobility STBs.

Commented Stephen Froehlich, Senior Analyst with the Consumer Electronics Research Group of IMS Research: “It is hard to believe that the timing of the New York Post leak is coincidental to the announcement of Google Play. Instead, I believe that Google is wisely working to preserve the trust of Motorola’s set-top box customers…Motorola Mobility designs and builds some of the most complex pay-TV networks on the planet. It is the trusted friend and supplier to Comcast, Cox, Charter, Verizon, AT&T, and others. However, as a subsidiary-to-be of Google, Motorola Mobility instantly became a frenemy.

"Absent rumours of the set-top box business sale, today’s rebranding of the “Android Marketplace” as “Google Play” would likely undermine that trust even further, which could impact Motorola Mobility’s profitable set-top box business.”