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Moto May Be Mulling Set-Top Sale

Moto could sell off its profitable set-top box unit for $4.5B, according to a WSJ report

Dan Jones

November 11, 2009

1 Min Read
Moto May Be Mulling Set-Top Sale

Motorola Inc. (NYSE: MOT) is reportedly in the early phases of considering a $4.5 billion sale of its set-top box division.

The Wall Street Journal reported today that Motorola is exploring the possibility of selling its home and networks mobility division for "roughly $4.5 billion." Bankers JP.MorganChase and Goldman Sachs & Co. are said to be advising Motorola; potential buyers could include other equipment vendors and private equity firms.

The set-top unit currently derives the most revenue of any single operation in Motorola. In the third quarter, the division posted revenue of $2 billion and an operating income of $199 million. In contrast, Motorola's flagship handset unit posted revenue of $1.7 billion and an operating loss of $183 million for the third quarter. (See Motorola Reports Q3.)

Motorola has previously talked about spinning off the handset unit itself into a separate company. But the firm's co-CEO and handset head, Sanjay Jha, still has plenty of work to do to turn the unit around and is pushing an aggressive Android-based smartphone strategy this year and through 2010. (See Motorola's Android Outlook.)

Motorola's shares were trading down after hours on the news at $8.77, following an $8.91 open on Wednesday morning.

— Dan Jones, Site Editor, Unstrung

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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