Doug on IP Comm » Ericsson http://dougonipcomm.com An independent voice on VoIP, telecom, and IP Communications Sat, 31 Dec 2011 18:22:46 +0000 en hourly 1 http://wordpress.org/?v=3.3 Ericsson buys Nortel wireless assets for big money http://dougonipcomm.com/2009/07/25/ericsson-buys-nortel-wireless-assets-for-big-money/ http://dougonipcomm.com/2009/07/25/ericsson-buys-nortel-wireless-assets-for-big-money/#comments Sun, 26 Jul 2009 02:00:53 +0000 Doug Mohney http://dougonipcomm.wordpress.com/?p=399 Ericsson announced its interest in Nortel’s wireless assets late, but it came home the winner, paying $1.13 billion for Nortel’s LTE and legacy CDMA business.   The deal will likely almost double Ericsson’s revenues in North America over the short term; Nortel’s CDMA operation ran at about $2 billion last year as compared to Ericsson’s [...]]]>

Ericsson announced its interest in Nortel’s wireless assets late, but it came home the winner, paying $1.13 billion for Nortel’s LTE and legacy CDMA business.   The deal will likely almost double Ericsson’s revenues in North America over the short term; Nortel’s CDMA operation ran at about $2 billion last year as compared to Ericsson’s $2.7 billion in North America for the same time period.

As a part of the deal, Ericsson is expected to offer about 2,500 former Nortel employees jobs.  Ericsson says it is getting the assets debt free, so life is good.

Nokia Siemens Networks and vulture capital firm MatlinPatterson had also put in bids. NSN had reportedly put up a $650 million bid as a stalking horse offer while MatlinPatterson had offered $725 million.

Wall Street analysts view both the deal and the price offered by Ericsson as a good deal, describing the former wireless unit as “very profitable.”  They also view the CDMA purchase as a bootstrap for LTE business as customers migrate off the older technology onto (shiny new) Ericsson gear.

]]> http://dougonipcomm.com/2009/07/25/ericsson-buys-nortel-wireless-assets-for-big-money/feed/ 0 Nortel's fire sale starts today http://dougonipcomm.com/2009/07/24/nortels-fire-sale-starts-today/ http://dougonipcomm.com/2009/07/24/nortels-fire-sale-starts-today/#comments Fri, 24 Jul 2009 17:25:05 +0000 Doug Mohney http://dougonipcomm.wordpress.com/?p=397 Nortel’s CDMA and LTE wireless assets are first up on the block today.  The good news for Nortel is 1) There are multiple bidders and 2) The price tag seems to go up every time someone issues a press release.

Nokia Siemens Networks, Research in Motion, Ericsson, and MatlinPatterson have all made offers in [...]]]>

Nortel’s CDMA and LTE wireless assets are first up on the block today.  The good news for Nortel is 1) There are multiple bidders and 2) The price tag seems to go up every time someone issues a press release.

Nokia Siemens Networks, Research in Motion, Ericsson, and MatlinPatterson have all made offers in some form. NSN put out a “stalking horse” of $650 million and suggested it might raise the offer. RIM got turned away despite offering $1.1 billion, which is now causing some consternation in Canadian government circles since purchase by Sugar Daddy BlackBerry would have kept Nortel assets and jobs all-Canadian.  Ericsson has offered up $730 million, just beating MatlinPatterson’s $725 million bid.

It will be interesting to see with who ends up with what when the smoke clears.  And RIM’s political posturing is likely to further complicate the process of any winning bid.

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