In the media: Moto just can’t break up

Fri, 01/15/2010 - 7:35am
Brian Santo

Motorola is putting its breakup on hold because it can’t find anyone willing to pay the price Motorola set for its Home & Network Mobility business, according to The Wall Street Journal.

The Journal reports that Motorola entertained bids from Huawei and Arris that were valued below the $4 billion to $5 billion that Motorola intended to get for the operation.

The whole point of the sale is to generate value for investors unhappy with consistently sinking financial results, so failing to attract a bid at some minimal threshold that guarantees investors an adequate payoff could very well stymie the breakup plan.

Motorola will initiate a new round of bids, however, the report says. If it does so, it will be against the background of decreasing sales, which will of course make it more difficult for Motorola to stick to its original asking price.

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