Ericsson To Take Over Motorola?


Ericsson Motorola takeover


Surfing the web all day we come across a lot of rumors. Even if most of them are trash, here's something very interesting: apparently Ericsson is thinking about acquiring Motorola. Probably these are just rumors, but only the thought of this happening is cool. Imagine what consequences this move would have to the mobile industry.

Now let's see the possibilities of this happening, because, without an analysis I might also say that tomorrow Nokia will buy Samsung, but no one would believe me. So, let's see, Motorola isn't doing so good right now, with sales dropping 15% last year (might not look so bad, but that's a $200 million loss). After the huge success that they've had with the Motorola V3 RAZR, almost 50 million of these handsets being sold all across the world, they never managed to come up with a true successor for this phone and doesn't look like they would do that soon.

Another major Motorola weakness would be the company's unstable management, due to the frequent conflicts between the stock holders. From the management point of view, right now they are sitting ducks out there.

Compared to Motorola's awful results, the major players in this industry, like Nokia or Ericsson are going through a very good time, with profits sky-rocketing. Plus, these mobile giants have also partnered in some way or another with other mobile companies (Ericsson with Sony, producing the Sony Ericsson handsets and Nokia with Siemens to provide better mobile solutions). Not to mention that these companies have a strong and stable management which would very easy manage a massive partnership or a takeover of this level.

Also, it is very interesting that none of the companies commented on this rumor, which leaves place for some serious questions. Of course, only time will tell if these rumors are true, but one thing is for sure, if this move will happen, the mobile industry will take a very interesting turn.

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