What's Moto's Next Move?
According to The Wall Street Journal, that would cut the core of Moto down to about one-third of its current size from an overall sales standpoint. Motorola, meanwhile, hasn't acknowledged any sort of specific separation strategy.
But the company's original thinking reportedly took a turn when bids from several parties, including Arris Group Inc. (Nasdaq: ARRS), for its profitable Home & Networks Mobility division fell well short of expectations. Our sources say bids were somewhere in the neighborhood of half of the $4.5 billion Moto wanted. (See Is Moto Having Second Thoughts? .)
In the meantime, Moto's M&A activity has been running on both sides of the fence. Last month, it sold its EuroDocsis CPE business to Taiwan's Compal Broadband Networks (CBN), but also closed a deal to buy software-based digital rights management firm SecureMedia Inc. (See Moto Streamlines EMEA Biz With Compal, Moto Sells EMEA Docsis Modem Biz, and Moto Nabs SecureMedia.)
— Jeff Baumgartner, Site Editor, Light Reading Cable