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Motorola CEO Hinting At Possible Merger?

Motorola Mobility CEO Sanjay Jha has claimed that the Smartphone market will evolve with hardware-software collaborations.

Speaking during an interview with Fortune, Jha hinted a consolidation in the future of the company but it will be centred on software collaborations. He was careful to point out that a consolidation for Motorola does not mean an all-out merger but a partnership of sorts with content and software makers.

Motorola plans to remain independent for as long as it can and claims that its company strategy is based around generating the maximum return for shareholders.

He also said that handset makers acquiring competitors was unhealthy for the market in the long run as it will limit the market’s growth.

“I'm not convinced that handset manufacturers acquiring other manufacturers is the best way for value to be created for shareholders,” Jha said.

“Consolidation across content manufacturers and hardware and software manufacturers - I see a bunch of different ways for this consolidation to occur, to create shareholder value and create different structures to the industry,” he added.

The CEO cited the controversial Nokia-Microsoft partnership as the ideal hardware-software consolidation he was talking about. Jha also pointed out Hewlett-Packard’s surprise acquisition of webOS maker Palm.