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May 27, 2008

According to Motorola, Videocon Industries is officially in discussions to acquire its handset business.

Discussions between the companies began recently and are still ongoing.

Videocon currently makes TVs and some appliances, but it’s also beginning to acquire wireless spectrum licenses, and said it wants to gain about 10 percent of the mobile phone market in India in five years from now.

Additionally, Videocon wants to manufacture phones for other companies, Videocon officials said.

The Indian company first expressed its interest in April.

Motorola is already involved in the India market in partnership with Tata Teleservices.

Early in 2008, Motorola announced its intentions to sell its handset business due to declining sales and a smaller market share.

According to analyst firm iSuppli, other companies that are considered potential buyers for the Motorola division include Apple, Dell, Google, Huawei Technology, Microsoft, Nokia and Sony Ericsson.

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Source: Motorola.