Goodbye Moto?
Motorola Looking to Shed Set-top Unit for $4.5 Billion: Report
Mike Farrell -- Multichannel News, 11/11/2009 12:51:59 PM
Motorola is reportedly exploring a sale of its Home and Networks Mobility unit, which includes its set-top box and mobile-phone network equipment operations, and has hired investment bankers JP Morgan Chase and Goldman Sachs as advisers.
According to a report in The Wall Street Journal citing people familiar with the matter, Motorola is in the early stages of seeking a buyer for its Home and Networks Mobility division. The Journal reported that Motorola is seeking $4.5 billion for the unit.
Possible suitors could include private equity companies and electronics giants like Samsung. Home and Networks Mobility accounted for $2 billion of Motorola's $5.5 billion in sales in the third quarter. Last year, it was the second-largest unit in the company, generating $10.1 billion of revenue.
According to The Journal, the decision to explore a sale comes after attempts to spin off its mobile handset unit have stalled.
In a statement, Motorola said it would not comment on rumor and speculation, but remains resolute in its wont to split into two separate companies -- mobile devices and broadband mobility solutions).
"We remain committed to the separation goal and continue to believe that it is the right strategy to position Motorola for long-term success," the company stated.
The Journal said a sale of the unit could pump some needed cash into Motorola, helping reverse what has been a downward spiral at its wireless handset unit. Sales at the Mobile Devices division, which includes wireless handsets, dipped 46% in the third quarter.
Still, the Home and Networks Mobility unit has not been unscathed by the recession. Revenue was down 15% in the third quarter and operating earnings at the unit were down 24% to $199 million from $263 million in the prior year.
Motorola is a major supplier of set-tops to the cable, satellite and telco video industries -- it shipped 18 million set-top boxes in 2008, up 19% from the prior year.
No related content found.
Featured Company
-
Telestream
Telestream products are used by the world's leading media and entertainment companies and corporations for transcoding and workflow automation. Telestream helps customers transform their media for multiplatform distribution to web, mobile, DVD, cable VOD, podcast and broadcast pl..more
VIEW ALL GALLERIES
