The mobile telephony needs heavy investment.
Motorola has decided in principle to sell Israeli mobile telephony unit Mirs. Press reports in the past few weeks spoke of talks on introducing partners into the company or selling it in different ways.
Motorola has come to a crossroads at which it has to decide whether to continue holding Mirs and injecting cash into it in order to put it on a new path, or to give up and find a buyer for it.
Mirs chairman and Motorola Israel head Elisha Yanay is charged with carrying out Motorola's decision about Mirs. Yanay himself has so far favored trying to keep Mirs as part of Motorola for various reasons, and he believes in the company. However, the difficulties that the Motorola parent company finds itself in, the economic situation, and the fact that heavy investment is required in Mirs, make the company less attractive, which is why the decision is to try and sell it.
Motorola said in response that it would not comment on rumor and speculation.
Published by Globes [online], Israel business news - www.globes.co.il - on May 21, 2009
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