(RTTNews) - Motorola, Inc. (MOT: News ), Monday said it signed a definitive agreement to acquire content management and delivery systems provider BitBand, specializing in video-on-demand for IPTV. Terms of the transaction, which is expected to close in the fourth quarter of 2009, were not disclosed.

Upon completion of the deal, Netanya, Israel-based BitBand, holding more than 60 commercial IPTV deployments all over the world, will be integrated into Motorola's Home & Networks Mobility business. The acquisition will complement Motorola's existing on-demand product line.

Commenting on the transaction, John Burke, senior vice president and general manager, Broadband Home Solutions, part of the Motorola Home & Networks Mobility business said, "BitBand has a leading share in IPTV video on demand and a strong base in Europe that we plan to leverage as we continue growing our infrastructure business in the EMEA region."

In march 26, 2008, the once mighty chip giant which was facing investor ire due to bad performance has decided to split itself into two units, namely the cellphone division and set-top boxes and communication equipment division.

The split, however, did no good to the failing cellphone business, which continued with its bad dreams. Sales of mobile devices was down by $1.8 billion in the first quarter of 2009. If absence of new products competent enough to replace Razr can be thought of as one reason, there were also several other reasons like the emergence of new players like Samsung, LG and Apple that started revolutionizing market with innovative products.
Latest reports indicate that Motorola is planning to sell its Sell Set-top Box Business Unit that makes wireless telephone handsets, besides selling wireless network infrastructure equipment such as cellular transmission base stations and signal amplifiers for $4 billion to $5 billion. The Home and Network Mobility unit is Motorola's largest and most profitable segment with sales of $10.1 billion last year.

Media reports also suggests that Motorola is likely to split its other two businesses, namely its cell phone handset making business and its two-way radio manufacturing business.

MOT is currently trading at $8.76, down $0.03 or 0.34%, on a volume of 5.39 million shares.

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by RTT Staff Writer

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