Nokia Siemens Network Buys Motorola Unit

Nokia Siemens Network Inc. is going to acquire the unit of Motorola in the coming few weeks. However, story at Nokia Siemens side is a little shady.

Apparently, the Nokia Siemens venture never went smooth and since the day, the deal was struck, both companies suffered a loss of market share by 53%. We are not sure as to why Motorola is so keen on buying Nokia Siemens but some sources say that Motorola is only in the deal, so that it can later on sell the Nokia Siemens department to some small company for a hefty amount of profit.

Rajeev Suri – CEO of Nokia Siemens said that the company is going to be acquired by Motorola – a world class supporter for next gen technologies. Nokia Siemens Network is going to see the benefits of a deal that is expected to enhance a stable cash-flow and positive prospects for new owners.
However, no one can guarantee if Nokia Siemens is going to have a smooth sailing in the future. The differences in business practices, accounting processes, logistics and other aspects of the two entities are complex and not so easy to handle.

The purchase for Motorola comes at a good time though because some experts believe that the demand of wireless technology based devices is expected to go up (provided that Motorola really wants to keep Nokia Siemens Networks under its ownership).

Also Motorola wants to make attempts in spinning off the cell phone division that manufactures such smartphones as the Droid X. but because of heavy losses in that division the plan has been postponed. As a matter if fact, the spin-off of Motorola Mobility is not scheduled for early 2011.

It will be interesting to se of Motorola is able to find competitive edge against Sony Ericson.