Nokia Siemens To Buy Motorola Unit For $1.2B

sylverboss writes with news that Nokia Siemens is buying Motorola's wireless networks division for $1.2 billion. "The deal gives Nokia — the world's leading supplier of mobile handsets — an invigorated entrance to the US market where it has lagged far behind other handset suppliers." According to BusinessWeek, "Motorola’s sale of the wireless-network unit prepares it for a broader restructuring. The company is planning to spin off its mobile-phone and set-top box operations into a company that will be led by co-Chief Executive Officer Sanjay Jha. The spinoff is on schedule for the first quarter, Jha said last month."

Comments

Damn, Apple should've nabbed them.

[Anonymous Coward]

It's too bad that Apple didn't snag them first. Maybe then iPhones would actually be able to make phone calls.

Re:Damn, Apple should've nabbed them.

[bdenton42]

It's not like Motorola had a chance. Apple restricted them to storing only 100 songs (50 overseas) to prevent it from competing with iPods. It wouldn't surprise me if the whole purpose of ROKR from Apples point of view was simply to get access to telephony IP for eventual use in iPhone.

Apple confirms it

[Anonymous Coward]

Nokia is dying. Less space than a Nomad, no iPod interface, unable to end calls with a simple touch of one finger to one corner of the phone, lame.

Network infrastructure, not handsets

[Tancred]

Note that this has nothing to do with either Nokia or Motorola phones themselves, but the network infrastructure business. There are a lot of pieces between the handsets such as antennas, switches, media gateways, routers, etc. That's the part that's being acquired by Nokia Siemens Networks (not Nokia proper, the handset manufacturer).

Re:Network infrastructure, not handsets

[bill_mcgonigle]

Good, they've been neglecting that business. I spent twenty minutes a few weeks ago trying to figure out their 900MHz canopy gear worked, or was even available, and failed pretty miserably.

Let's see, they're selling networking, spun off Freescale, are spinning off the handsets and set-tops. So they'll be a 2-way radio and checkout counter gear company by this time next year?

Re:Network infrastructure, not handsets

[Luckyo]

Essentially at start this seemed brilliant - Nokia's cellular networking + Siemens' more of the same. Standard fusion, same amount of function but less people due to axing redundancies (this is the company that makes cellular towers and such, typically entire networking solutions that it sells to operators as a package).

Problem was, Siemens' part of the deal was poisonous. Almost instantly after the merger, it came out that Siemens bosses had taken part in some nasty bribery in the recent past before the merger, and the new fused company was forced to take the blame for the entire thing. They lost quite a lot of reputation, had to pay fines, and cut people even more then expected.
They seem to have recovered now though, and have a very solid part of infrastructure market now. Iirc their main competitors were motorola's networking division and sony eriksson's networking division, one of which they're now buying, in addition to many smaller makers (and I think I'm missing at least one major asian one whos name eludes me).

It's worth noting that htc, apple, rim, et al and in fact most mobile phone makers have no part in this particular business - this is strictly network-side stuff.

Re:Network infrastructure, not handsets

[flosofl]

So they'll be a 2-way radio and checkout counter gear company by this time next year?

And enterprise WiFi and Wireless IPS/IDS devices. Oh, and managed services for the WiFi and IPS/IDS. Basically, anything that was in the Enterprise Mobility Solutions (the *only* profitable division by a long, long shot).

Basically:
Networking (LTE, GSM, iDEN, etc...) sold to Nokia Siemens
Mobility (phones and consumer products) spun off into Motorola Mobility
EMS (public safety, Symbol products, AireDefense, RFS switches, etc...) re-branded as Motorola Solutions

Re:Network infrastructure, not handsets

[Rudolf]

Networking (LTE, GSM, iDEN, etc...) sold to Nokia Siemens
No, Moto is keeping iDEN. Nokia doesn't want it.

From the article:
"NSN declined to pick up Motorola's aging iDEN technology..."

Re:Network infrastructure, not handsets

[stupid_is]

A customer in this context is a network operator - like Verizon. There are a few biggies that Motorola has (Verizon - CDMA, CMCC - GSM, Zain - GSM) and there are lots of small ones. The small ones will spend a few mill on network equipment, the biggies will spend a few hundred mill

Hold on.

[ceraphis]

Wait just a minute. Nokia is buying Motorola's wireless division? As in, they get control of all the droid handsets everyone's making a fuss about right now? Does Motorola still make the Razrs or some newer "best of class" feature phone like I think everyone raved about back in the day? Maybe I am just terribly bad about the sense of scale but 1.2 billion almost seems too low.

I wonder if Nokia is going to slowly work them into the symbian fold...after they make all their droid handsets self destruct?

Motorola keeps all their phones

[Tancred]

This deal is only about network infrastructure, not handsets.

Re:Engineola

[rubato]

> just a sore loser following in [insert successful handset mfg here]'s wake.

Now it's fixed.

Must regret underbidding on Nortel CDMA.

[guidryp]

NSN were the stalking horse on Nortel CDMA/LTE infrastructure bidding, that Ericsson won for just over a billion.

Nortel had a larger CDMA (major piece NSN is missing) market share than Motorola, so now it looks like they paid more for less.

Something's wrong

[bobwrit]

(another article on the sale/breakup: http://www.google.com/hostednews/ap/article/ALeqM5g3CNyGettVebplcruc9y1CPA9amwD9H2CL2G0) So, Motorola had to break up due to losses. Yeah, there is probably accounting fee's and the cost of the infrastructure that they sold off, but, they should have enough profit to counter those looses from their phone mfg dept. I mean, look at the phones that they've released recently, Droid and Droid X specifically. The profits should off set, unless they didn't maintain their infrastructure correctly(what I suspect happened). Have fun with with poor hardware, Nokia...

that was FUNNY!

[Gary W. Longsine]

Mods, mods, mods. No sense of humor?

I think it is just one mod.

[Ecuador]

CmdrTaco doesn't think it's funny...