Motorola is reported to have put the sale of its Home & Networks Mobility unit on hold.
Motorola was due to auction off the unit but is thought to have put the plans aside for now due to lower than expected bids. The Home & Networks Mobility division…
Motorola is reported to have put the sale of its Home & Networks Mobility unit on hold.
Motorola was due to auction off the unit but is thought to have put the plans aside for now due to lower than expected bids. The Home & Networks Mobility division posted 2008 sales of US$10.1bn and the US based telco was seeking some US$4-5bn for the sale of the unit, but with bids reportedly only in the US$3-4bn range, the telco seems to have decided to put plans on hold. Bidders are thought to include Huawei and Arris, and private equity firms TPG and Silver Lake Partners have in the past showed an interest in the asset, with Permira and Blackstone also eyeing a bid.
Earlier this week, Motorola sold off its European cable modem firm EuroDocsis, a business which is part of the Home & Networks Mobility unit. EuroDocsis was sold to Taiwanese based Compal Broadband Networks, and although the financial details of the deal remain undisclosed, EuroDocsis is thought to have annual revenues of approximately US$50m. After this sale, rumors that Motorola would indeed sell off the company in smaller parts rather than as a whole were enforced.
Motorola’s Home & Networks Mobility unit develops set-top boxes for cable TV and mobile phone networking gear.
The second round of bidding for the unit was due to take place in mid February, but there is now uncertainty as to the timeline and whether or not the sale and bids are still on. The telco’s board is reportedly due to meet in the very near future to decide on the next step.
Motorola is advised by Goldman Sachs, JP Morgan Chase and Centerview Partners on the sale.