(Corrects analyst’s estimate of European cable business rwevenue to about $50 mln, from $200 mln, after analyst recalculated estimates)
* Sells unit to Compal
* Declines to disclose financial details
NEW YORK, Jan 12 (Reuters) - Motorola Inc MOT.N has sold its European cable modem business to Compal Electronics Inc (2324.TW), the company said on Tuesday without disclosing the financial details of the deal.
The news comes amid reports that Motorola is looking to sell its Home and Networks business, which includes television set-top boxes and wireless network equipment as well as broadband modems. [ID:nN18234680].
Motorola said it would continue to support the cable modem technology used for high-speed Internet access, in the Americas and Asia Pacific region. It said it began transferring inventory to Compal for the sold business on Jan 5.
Avian Securities analyst Matthew Thornton said that selling the Home and Networks business in pieces would make sense as he does not expect one buyer to snap up the the whole unit.
Thornton estimated that Motorola’s European cable modem business brings in about $50 million in annual revenue, representing a small percentage of the home unit’s total annual revenue of about $3.9 billion. (Reporting by Sinead Carew; Editing Bernard Orr)