Motorola, Nokia Siemens in Acquisition Talks: Report
Nokia Siemens Networks is reportedly interested in purchasing a Motorola unit responsible for creating telecommunications equipment. The sale could enable Motorola to better focus on smartphone sales.Motorola is in talks with Nokia Siemens Networks about selling a unit of the company that's responsible for older-generation telecommunications equipment, the Wall Street Journal reported July 13, citing people familiar with the matter. Were the deal to go through, the Journal estimates that it could be worth $1.1 billion to $1.3 billion. For Nokia Siemens Networks - a joint venture between handset-maker Nokia and Siemens AG of Germany - it would also offer direct access to Motorola's telecommunications customers as they look to upgrade their equipment. Such access could prove key in successfully competing against suppliers such as China's Huawei Technologies. (Along with Motorola, Huawei is, among other things, a supplier of equipment to Clearwire for its WiMax network.)
Earlier this year, Motorola announced that it planned to split into two independent and publicly traded companies during the first quarter of 2011. One company will consist of Motorola's Mobile Devices and Home units and the other of its Enterprise Mobility Solutions and Networks units.