GSMA Business Briefing
July 14, 2010
Reports have resurfaced suggesting that Motorola may sell its networks business, with Nokia Siemens Networks (NSN) the most likely acquirer. A Wall Street Journal (WSJ) report claims NSN is in talks to buy the unit and a deal could be reached in the next few weeks. A value of around US$1.1 billion to US$1.3 billion has been put on the deal, far less than other reported bids earlier this year of US$4 billion. Chinese vendor Huawei was a strong contender to buy the business earlier this year, but the latest WSJ report claims negotiations with the company have now “cooled, perhaps due to concerns about clearing security hurdles.”
Officially, Motorola is currently planning on splitting its businesses into two units in the first quarter of next year. Motorola Mobility will comprise the company's mobile devices and set-top box business, while Motorola Solutions will include its enterprise and network equipment business. Sanjay Jha, co-chief executive officer of Motorola, will serve as chief executive officer of Motorola Mobility, whilst Greg Brown, fellow co-chief executive officer, will head up Motorola Solutions. The WSJ notes that whilst Motorola has focused its energies on the split rather than a sale, Greg Brown has said the company would consider offers for the networks business. A win for NSN would strengthen its standing as the industry’s second-largest mobile network vendor (behind Ericsson) and give it greater presence in North America.
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