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Motorola, Nortel to combine networking units
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According to a report in the Wall Street Journal, Motorola and Nortel have been in talks for nearly a month to forge a joint venture involving the two companies' wireless networking technology groups. The current talks center on a JV that gives Nortel majority ownership and Motorola a minority stake. The two companies mulled another arrangement whereby each would take 40 percent of the venture, while the remaining 20 percent would be held by a financial investor, however, the companies scrapped that idea once private equity proved hard to raise.
Analysts estimate that the potential joint venture would have sales of about $10 billion. The new JV would also include Motorola's iDEN network technology.
For more on the potential JV:
- read this article from the WSJ
Comments
Posted by Anonymous | February 11, 2008 - 4:05pm
THEY TRIED THIS FUBAR BACK IN THE EARLY 90'S-DIDNT WORK THEN EITHER...JW
Posted by NK Goyal India | February 11, 2008 - 8:03pm
It is amazing to see world unfolding. First more and more companies growing justifying competition and better price and service to customer. THEN mergers and acquisitions, almost each joining other. In this situation the talks of 3 G, 4G, wireless Broadband, digital divide, reserach in telecom all becomes relevant but jointly. Where will be competition? And hjaving achieved substantial mass, where to sell now. Complexity on one side, technical jargon on other side, better speed promises in next five years, burt what is today? NK Goyal India
Posted by Anabelle | February 12, 2008 - 3:54pm
Motorola & Nortel have already had a joint venture in the first half of the 90's. It was a disaster and didn't last long. The culture of Motorola does not mesh with that of other companies. It just does not work. Why would anyone think this JV will be any different? Neither of these companies learn from past mistakes. Anabelle
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