Date: 02-12-2008
Motorola Inc. and Nortel Networks Corp. are reportedly discussing a joint venture that would combine their respective wireless infrastructure units, with Nortel having a majority stake. If an agreement is reached, then the two parties will merge their operations to make network equipment for wireless phone carriers. The estimated sales from this combination would be approximately $10 billion. Efforts are already underway at Motorola to possibly relinquish its handset division. The Wall Street Journal further reported that the venture would allow reductions in the firms’ marketing and R&D costs while giving the businesses the ability to compete for network upgrade contracts.
