Motorola mulls breakup of the company, may sell beleaguered cellphone business to Dell

“Motorola Inc. disclosed late Thursday that the Schaumburg maker of communication products is exploring a ‘strategic realignment’ that might include divestiture of its troubled cellular-phone business,” James P. Miller reports for The Chicago Tribune.

“Motorola shares were pounded recently, after the company reported fourth-quarter results battered by the continuing loss of market share in cell phones . Once riding high on the success of its striking Razr, Motorola’s handset business has had difficulty finding a follow-up hit – and its rivals have moved in to take a growing share of the global market,” Miller reports.

“Motorola’s cell-phone problems renewed speculation that the company might exit the volatile handset business and concentrate on its remaining, less-volatile communications-equipment operations. This week, Nomura analyst Richard Windsor raised that possibility and noted that rumors of a Chinese buyer for Motorola’s handset business have revived,” Miller reports.

Full article here.

[Thanks to MacDailyNews Reader “ChicagoMusicGuy” for the heads up.]

Jim Goldman reports for CNBC, “A source following the situation closely tells me that Motorola would not have made this move without having a buyer for the handset business in mind already. Further, he says, advanced negotiations to that end are already underway between Motorola and Dell.”

Full article here.

That’s what you get when you rest on your laurels and fail to innovate. Palm can tell Moto all about it. And, Dell? Puleeze. Let us sing you a little Ditty about that prospect.

May 10, 2007, Motorola Chairman (until May) and then-CEO Ed Zander said his company was ready for competition from Apple’s iPhone, due out the following month. “How do you deal with that?” Zander was asked at the Software 2007 conference Wednesday in Santa Clara, Calif. Zander quickly retorted, “How do they deal with us?”IDG News Service

It took but one year for Zander to lose both his CEO and Chairman positions. Take a look at Motorola today, Ed. That’s how they dealt with you. Any more questions?

31 Comments

  1. Dell is a great fit for this, because you just need to shove cheap parts into a small container, install Windows Mobile and you’ve got a shippable product. That’s why Dell has done so well with their line of PDA’s.

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