Sony Ericcson to take over Motorola??

Motorola has one the oldest tradition when it comes to mobile phones.. Martin Cooper of Motorola is widely considered to be the inventor of the first practical mobile phone for handheld use in a non-vehicle setting. While, Sony Ericsson is the new kid in the block, a company established only in 2001. But, it seems the kid is going to take over the big daddy of mobile phones. At least that is what the rumour mills are spreading over the last few weeks. Motorola has not had much success in the last few years, their sales have gone down, and conversely, Sony Ericsson is even competing Nokia for the Prime Market. Now, that makes the rumour believable.
This is what Mobile Mentalism says,

For the first quarter of 2007, Motorola's mobile handset sales were down 15% from the previous year, and incurred an operating loss of $231 million. This was in stark contrast to Sony Ericsson and Nokia, both of whom enjoyed considerable success with their range of handsets.

Internally, Motorola has been having a battle with Carl Icahn, who owns 3% of Motorola's stock, and who recently failed in his attempt to win a seat on the Board of Directors at Motorola. Icahn has pulled no punches in his criticism of Motorola's current management.

Against this backdrop comes the rumour of Ericsson buying Motorola.

Also the analyst Ed Snyder at Charter Equity Research, has allegedly claimed that two of the main shareholders in Motorola told him that Carl Icahn has spread the rumours about this possible merger. And it's not like Icahn doesn't have his own agenda!

Who knows we might get too see MotoRokrs with Megabass, or a Motorazrs with CyberShot. Let us wait and see. You may be excited, I also may be. But this might be sending nightmares to Nokia, as this merger would definitely remove them from the top spot. Already Sony Ericsson is known for its perfection and is dominating the middle and high end market. Also, the critics have acclaimed Sony Ericcson for the better sound and camera. If this merger happens, they could easily invade all the markets.
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