Motorola has reportedly secured advisors for the sale of its networking gear business, according to insiders cited by Reuters. Sources said the struggling vendor signed Goldman Sachs and JP Morgan Chase to advise on a sale expected to net upwards of US$4.5 billion.

Motorola previously indicated it would spinoff its beleaguered handset business, but a premature asset sale could jeopardize those plans. “The mobile devices business still needs the rest of the businesses to fund it operations. It hasn’t really recovered fully yet so it would be a little too early to cut off the lifeline,” said RBC analyst Mark Sue.

Motorola’s home and networks division enjoys a robust presence in the set-top
box market in addition to its other network equipment lines. Acquiring the business would significantly improve a buyer’s position in the US mobile network gear space, which remains lucrative despite slowing growth in recent quarters. Sources outlined a series of potential buyers including Ericsson, Samsung and Huawei Technologies. Private equity firms including TPG have also reportedly expressed an interest.

Motorola declined to comment on the speculation, with spokesperson Jennifer Erickson telling reporters it remains “committed to the separation goal and continue to believe that it is the right strategy to position Motorola for long-term success.”

Patrick Neighly