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Motorola prepares for network unit sale

16 March 2010

Motorola is close to taking a decision on splitting the company into a handset business and a separate network infrastructure operation, which may be sold off

Read more: Motorola Huawei Greg Brown

Motorola is planning to sell its mobile network infrastructure business, but may team up with a rival to form a joint venture, according to reports.

The company is planning a group demerger that will result in separate companies for its handset and infrastructure businesses early next year. Greg Brown, co-CEO of Motorola, will lead the companies that make network infrastructure and mobile radio equipment for the emergency services.

The two units will be run separately, giving Brown the ability to sell the network business, or put it into a joint venture with a rival.

China’s Huawei Technologies is an obvious choice for the deal. The two companies have set up a partnership in 2006 focusing on the development of network equipment based on third-generation wireless technology.

The network business is part of a Motorola unit that also makes television set top boxes. GTB




Comments
  • If Motorola does team up to for a joint venture how will that affect share prices?

    Claudette Gerhold | 16 Mar 2010

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