ARRIS Group Inc. (NASDAQ: ARRS) and Charter Communications, Inc. (NASDAQ: CHTR) say they will create a joint venture to purchase ActiveVideo, a developer of customer premises equipment (CPE) virtualization software. The two companies will pay approximately $135 million for the privately held firm. When the transaction closes, an event the new partners expect to occur in the present quarter, ARRIS will own 65% of the joint venture company and will provide the sales channel for ActiveVideo's CloudTV platform. ActiveVideo’s CloudTV is a cloud-based software platform designed to speed service delivery by virtualizing CPE functions in the cloud (see "Time for Virtual Set-Tops?"). Charter is using CloudTV to support its new cloud-based Spectrum Guide, which the company plans to launch on Worldbox and legacy boxes currently in its network (see "Charter Taps Cisco, ActiveVideo for Cloud Video"). Additional CloudTV customers include Cablevision, Liberty Global, Deutsche Telekom, Time Warner Cable, J:COM, Philips, and Roku (see "Charter, Cablevision Tap ActiveVideo"). Current ActiveVideo President and CEO Jeff Miller will remain onboard as CEO after the deal closes, which is contingent upon the usual closing conditions and receipt of regulatory approval.