In late March, Motorola Mobility
Although the companies did not disclose the terms of the deal, Motorola has announced that the Dreampark software would be combined with its Medio service management suite after the transaction closes in the latter half of this year.
It's absolutely fair to assume that the deal is unlikely to have a remarkable impact on Motorola's stock in the short run. Nevertheless, this deal would likely strengthen Motorola's hold on system integrators and content providers segment. Bear in mind, Motorola is struggling to improve its position in the market.
Struggle for power
It has not been a bed of roses for Motorola Mobility. After the outsized success of its RAZR phone mid-decade, the company was unable to carry momentum in future designs, and it watched revenue fall off a cliff. Apple's
As part of the plan, Motorola Mobility got separated from Motorola Solutions
Can small drops satisfy the thirst?
Swedish IPTV player Dreampark isn't Motorola's only recent acquisition. After cash acquisitions declined from $519 million in 2007 all the way down to $21 million in 2009, the company has once again found an acquisitive bent. In 2010, cash acquisitions managed to climb back to $142 million, implying that Motorola has intensified its hunt for suitable software. This year, to name a few, it has invested in patented licensed digital rights lock provider Catch Media and mobile enterprise security developer Three Laws Mobility. Looks like Motorola is planning to build a bridge on the troubled waters through small and qualitative acquisitions.
Acquisitions are a great way for a company like Motorola -- which is finding itself increasingly in a battle to offer differentiating software -- to fill holes and better compete in its core markets. Now, it depends on Motorola effectively managing and integrating these products. With so much growth in digital entertainment and mobile devices, there's plenty of opportunity ahead, but only if Motorola can keep executing.