Speculation is building that Motorola may not be able to spin off its handset business.
It all arise from the bearish note published by Ittai Kidron, an influential analyst at Oppenheimer, which argues that Moto’s travails are too deep to make a sell-off happen.He said: “To spin off the handset unit, Moto’s board has to be convinced that the handset unit can be sustainable on its own - not necessarily profitable but with a time line to profitability and enough capital (available or accessible) to get there…we are increasingly inclined to believe this process could be delayed or scrapped altogether.”
In other words, the handset business is worse less than nothing and it might be better to just shut it down.
Moto’s market share has plummeted in the last 12 months. Various companies have been linked with a purchase, most recently with Indian conglomerate Videocon.
Advertisement
