Motorola's Handset Division Might Be Bought By Videocon

Videocon, one of India's largest industrial conglomerates, recently revealed its intention to buy Motorola's handsets division, valued at more than $3.5 billion. This comes shortly after the American giant announced it will divide its business into two independent companies, a Mobile Devices one and a Broadband & Mobility Solutions one.

Motorola is having some hard times (mainly in the last year), because of the tough competition coming from both new and old handsets manufacturers, including Apple, RIM, Samsung, LG, Sony Ericsson and, of course, the largest mobile phone manufacturer, Nokia.

Business Standard, a leading business and finance-oriented newspaper from India, reports that Videocon is interested in buying Motorola because it will soon launch a new GSM network and, also, it wants to enter the global mobile industry.

I guess the possible acquisition of an American world-known company by an Indian one might come as a big surprise for many people, but if they're to think the whole matter through, there's nothing surprising here. Videocon is, after all, a strong conglomerate, currently having manufacturing plants not only in India, but also in China, Mexico, Italy and Poland. Although the company is best known for its TVs and electronics products, one of its most important businesses is in the oil industry, known for being highly profitable.

If Videocon will indeed buy Motorola's cell phone division, it would not be the first case of an important global brand to be acquired by an India-based company. Just about a week ago, Ford sold its Jaguar and Land Rover divisions to Tata Group, India's largest (and most powerful) private company, for $2.3 billion (1.46 billion Euro), making clear the fact that money matters more than world-wide fame.

As for the Motorola – India relation, Moto's handsets are quite popular in the country, especially those who come for affordable prices.

Until now, there have been no declarations from Motorola concerning a deal with Videocon. However, we can only hope that, whoever buys Motorola's cell phone division (if Moto wants to sell, of course), the result will be beneficial for both the consumers and the whole mobile industry.



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