Will Moto & Nortel combine their networking units?

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.

This potential news was met with cynicism at the Mobile World Congress. One industry analyst scoffed at the prospect of this JV, saying that "two losers don't make a winner."

For more:
- read this article from the WSJ

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