Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Motorola's Good Deal [Chicago Tribune]
Summary: Last Friday, Motorola announced a deal to purchase Good Technology, a mobile phone software developer primarily for enterprises. Details on the value of the deal were not disclosed, but it's expected to close in early '07. Nokia paid $430m for Good Tech rival Intellisync, which has similar market share (9% vs. 8%) in wireless email, earlier this year. Research in Motion has a 59% market share. A Forrester Research analyst said it is a "good deal" added that a "big short-term opportunity" exists in corporate email. It is said Motorola is weak in the corporate sector. Good is seen helping sales of Motorola's "Q" phone. Good also makes software for Palm's Treo smartphones. Separately, Motorola will sign a deal later today with a Chinese distributor for $1.6 billion to supply 12 million mobile phones in '07.
Related links: Motorola: Good Tech acquisition press release. Additional coverage: WSJ and MarketWatch (re. China supplier deal). Commentary: Merrill: Motorola's Good Acquisition Shouldn't Harm RIMM • Motorola Units, ASPs, Margins Under Pressure? • Nokia: Positive Outlook for China's 'Maturing and Emerging' Mobile Phone Market • Vodafone's OS Strategy: Impact To Handset Makers • Motorola Gains Market Share But Misses Q3 Sales Target • Merrill Lynch Ups Handset Sales Forecasts Believing 2006 Could Be Peak Year for Global Sales • Cellphone Market Report: RAZR Mania Peaked, Sony Ericsson Growing Fastest. Earnings conference call transcripts: Motorola Q3 2006, LM Ericsson Q3 2006, Nokia Q3 2006 , Palm F1Q07 and Research In Motion F2Q07.
Potentially impacted stocks and ETFs: Motorola (MOT) • Competitors: Ericsson (NASDAQ:ERIC), Nokia (NYSE:NOK), Palm (PALM), Research in Motion (RIMM) • ETFs: Broadband HOLDRs (NYSE:BDH), iShares Goldman Sachs Networking (NYSEARCA:IGN), iShares Goldman Sachs Semiconductor (IGW), PowerShares Dynamic Telecom & Wireless (PTE), Wireless HOLDRs (WMH)
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