Moto looking to sell home & networks division: reports
Motorola is searching for buyers for its home and networks division, with a target sale price of around €3 billion.
The company is approaching private equity firms and rival vendors as potential buyers, sources told the Wall Street Journal.
Reuters reported that Motorola was in the early stages of seeking buyers for the unit, its largest by revenue. It has appointed J.P. Morgan Chase and Goldman Sachs as advisers, Reuters said.
The division, which produces mobile network equipment and cable TV set top boxes, notched up sales of €6.7 billion last year.
Potential buyers could include Ericsson, Samsung, Alcatel Lucent or Nokia Siemens. The Journal said Huawei Technologies or UK-based Pace could also be attracted to the acquisition.
Analysts said Motorola’s strong market share in the set-top box business, where it is bigger than Scientific Atlanta, could generate wide interest from networking vendors and IT firms. Scientific Atlanta is now owned by Cisco as the IP networking pushes into the emerging home networking and entertainment segment.
Avian Securities analyst Matthew Thornton told Reuters a €3 billion price tag would represent an 18% premium over his estimated valuation of €2.5 billion.