Motorola considering sale of MIRS amid uncertain future

8 Jun 2009

Israeli iDEN operator MIRS Communications, a wholly owned subsidiary of Motorola Israel, has reportedly been put up for sale by its owner, according to Globes Online. Motorola is also believed to be considering bringing onboard a partner to help manage MIRS, as well as selling the operator outright. Walt Disney’s investment arm, Shamrock Holdings, has reportedly shown an interest in MIRS, and it is believed that preliminary negotiations between the companies have begun. Motorola is reportedly hoping to raise approximately USD300 million from the sale, and it believes the iDEN operator needs a substantial injection of capital to continue operating.

According to TeleGeography’s GlobalComms database, the move comes as MIRS looks tentatively towards the future. The iDEN operator had expressed an interest in entering the WiMAX arena, but more recently the Ministry of Communications has pressed for it to consider the rollout of a 3G network. It is thought, however, that Motorola is not keen to invest in such a rollout, hence the decision to sell, or at least take on a partner.

Israel, HOT Mobile, Motorola