Motorola’s Handset Division Could Sell for as Little as $500 Mil

Poor Motorola. After unsuccessful attempts to sell off its handset division, Motorola tried to spin it off. Sadly, the economic slump looks to ruin the company’s plans to spin off as well and analysts are not looking very favorably upon the handset division’s worth.

Motorola is still trying to figure out what to do with its struggling division, which analysts say would be lucky to get $500 million if acquired. Late last year the same analysts valued it at $8 billion.

Still, acquisition would most likely be a better option than trying to separate it into another business because this struggling division is surviving by its dependence upon the other divisions within Motorola. Being its own entity would not be the best thing.

Moto phones

Some analysts even believe Motorola will need to pay someone to take the handset division off its hands; none of this matters, however, if they can’t find a buyer. Some firms have been purchasing other handset companies for cheap, such as AIG Investments buying out UTStarcom for $240 million. This being the case, Moto may still have a chance after all.

So if any of you out there have a few hundred mill lying around and have always wanted your very own cell phone company, it may not hurt to at least make an offer.

via BusinessWeek

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Posted on 10 Jul 08 - Filed in Motorola, Wireless - Comments - Written by bradmolen

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