It appears that Motorola's desire to sell off its Home and Networks Mobility unit has been put in mothballs for the moment because it apparently received lower-than-expected offers for the unit. According to a report in the Wall Street Journal, potential bidders offered $3 to $4 billion for the unit.
This latest development comes after a Reuters report revealed in late December that private equity firms Bain Capital, TPG Capital, Blackstone Group LP and Silver Lake Partners, had placed bids on the table.
As these rumors emerged over the past month, Motorola has not confirmed plans for the unit. The only thing it has said publicly is that it is committed to the profitable STB business and other sectors that comprise the Home and Networks Mobility unit.
Motorola may be putting the sale of the HNM unit on hold, but the company is making some deals. Last week, Motorola sold its EuroDOCSIS cable unit to Taiwan's Compal Electronics for an undisclosed sum. Interestingly, Motorola will continue to oversee DOCSIS cable modem product development, while CBN will handle sales and support.
One potential reason why Motorola is putting the sale on hold as theorized by FierceTelecom's sister publication FierceIPTV is that potential buyers have put conservative bids on the table due to the tough economic climate.
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