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New Motorola mulls STB sale -
Motorola mulls STB sale
November 11, 2009
Motorola is exploring a $4.5 billion (€3.23bn) sale of its Home and Networks Mobility division, the Wall Street Journal reported on Wednesday.
Quoting sources familiar with the matter the Journal said the company was being advised by JP Morgan Chase and Goldman Sachs. A sale could be made to either a private equity company or an industry buyer.
The sale of Motorola’s largest division by sales follows an attempt to spin-off the company’s mobile phone unit. Its position has been bolstered by falling mobile sales, but Home and Networks itself suffered falling sales, at $2 billion down 15% in the third quarter when compared to 2008.
One of the top three receiver manufacturers, Motorola has a well established position as a provider of infrastructure to the US cable market. However, its position in Europe was eroded with the launch of digital TV services in the late 1990s. The company subsequently acquired the Swedish Kreatel Communications, its software and hardware solutions incorporated into the Motorola range.