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Motorola may merge set-top and handset units
11 February 2010
Motorola is reported to be rethinking its restructuring, selling its wireless network unit and spinning off a merged handset and set-top box unit
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Motorola is revamping its initial strategy of divesting one of its main business divisions, according to US reports. The vendor is considering spinning off its TV set-top box and core handset operations into a new, merged publicly traded company.
Under the revised plan, Motorola will continue the auction of its wireless networking division, which is not considered to be one of its core businesses. The sale of the unit, which may raise at least $1 billion, has drawn interest from Chinese telecoms vendor Huawei.
Motorola moved into the set-top box business when it bought General Instrument in 2000 in a deal valued at $17 billion.
With the potential changes, Motorola will be at less than one-third of its current size, with a business dealing in equipment for public-radio systems and bar-code scanners. The potential transaction will leave the company down to about $7 billion in sales as compared with $22 billion in 2009. GTB