Chicago is My Home

22
Feb

Motorola Makes Three Announcements to Facilitate Rebound Attempt

Author: Adam Fendelman, Category: Technology

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The continuing saga of struggling Schaumburg, Ill.-based Motorola continues as three announcements regarding the cell phone maker were made this week. Here’s the rundown:

1) In a move that hopes to further the company’s reach, Motorola finalized the purchase of digital music download provider Soundbuzz, which is based in Singapore.

The acquisition is meant to target the larger Asian consumer sector as cell phone use is more prevalent than personal computer ownership. Motorola currently owns MotoMusic, which serves greater China. Soundbuzz will extend music download sales in Southeast Asia and India.

2) On Thursday, Motorola announced that private-equity partner Paul Liska will take over the CFO position and replace Tom Meredith. Liska previously worked as an executive at MidOcean Partners, CVC Capital Holdings and Ripplewood Holdings. The announcement did little to move Motorola’s lagging stock price.

3) Motorola and Waterloo, Ontario-based Research in Motion (RIM) (the maker of the BlackBerry) traded patent infringement lawsuits in U.S. district court.

RIM alleges that Motorola has refused to pay royalties for patents and Motorola says RIM is infringing on certain patents. Motorola and RIM previously had a cross-license agreement. The current lawsuits seem to stem from a failure to renew the agreement.

By Stephanie Huls