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Comments on Nokia-Siemens Acquiring Motorola’s Networks Business

Monday, July 19, 2010 posted by cversace

Think 20/20 analyst Chris Versace issued “Comments on Nokia-Siemens Acquiring Motorola’s Networks Business” in response to the news that Nokia-Siemens would be acquiring Motorola’s Networks Business early today.

Earlier today it was announced that Nokia-Siemens would be acquiring Motorola’s Networks business for $1.2 billion in cash. At first blush, the transaction, which has been the subject of much chatter over the last few weeks, is positive for Motorola and in our view neutral at best for Nokia.

We say positive for Motorola because it eliminates what has been a struggling business for more than a few years and should leave the soon to be stand-alone public-safety business in a much better position. The question that will be asked and will no doubt not be answered until the split between Motorola Mobility and Motorola Solutions is how the proceeds from the sales will be split between the two entities. We suspect that at least a portion of the proceeds will find its way into Motorola Mobility to help fund its R&D initiatives as well as other corporate activities.

With regard to Nokia-Siemens,…

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