Motorola: Here’s an Idea: Let’s Sell Off Our Most Profitable Division
Got a set-top box fetish and a few billion dollars to blow on it? Then boy, does Motorola have a deal for you. “People familiar with the matter” tell The Wall Street Journal that the company is seeking a buyer for its home and networks mobility division, which makes set-top boxes and other kit for the cable and telecom industry.
With sales of $10.1 billion last year, a third of its total, the home and networks business is among Motorola’s (MOT) largest and most profitable. It also makes Motorola one of the top three set-top box manufacturers in the industry. As such, the division will command a hefty price–roughly $4.5 billion, according to The Journal, which posits private equity firms and other communications gear makers as possible buyers.
No word yet on whether the possibility of selling home and networks emerged after Motorola was unable to spin off its mobile-phone business. The company for its part, insists that such a move is still in the cards.
“Separation into two independent, publicly traded companies (Mobile Devices and Broadband Mobility Solutions, which comprise Enterprise Mobility Solutions and Home and Networks Mobility Solutions) is the publicly stated long-term goal of Motorola,” the company said in a statement. “We remain committed to the separation goal and continue to believe that it is the right strategy to position Motorola for long-term success.”