Motorola Talking to RiverDelta?
File this one under: Unconfirmed Rumors That Seem Worth Repeating on a Slow News Day.
Rumor has it that Motorola Inc. (NYSE: MOT) is in talks to buy RiverDelta Networks. One source has RiverDelta going for as much as $500 million.
It’s not such a far-fetched story, really. Motorola needs a next-generation cable modem termination system and a competitive broadband services router, and RiverDelta Networks has both (see RiverDelta Introduces Switch/Router). RiverDelta, even with the distribution deal it has with Siemens AG (NYSE: SI; Frankfurt: SIE), would benefit from the cable operator customer base that Motorola has.
Not to mention that Motorola, whose mobile phone business has been in the dumps lately, could stand to boost its broadband communications group. That unit was responsible for about 16 percent of Motorola’s sales in 2000.
Then there are some other random coincidences, such as the fact that one of RiverDelta's board members, Bruce Sachs of Charles River Ventures, also served on the board of C-Port. C-Port was the networking chip firm that Motorola bought in May 2000. RiverDelta has another common thread with Motorola in Jeff Walker, its marketing VP. Walker was hired in February 2000 after spending 15 years with Motorola’s Internet and Networking Group.
Neither Motorola nor RiverDelta returned calls by press time (making our job considerably easier).
- Phil Harvey, Senior Editor, Light Reading