Mobile Market Watch
Motorola stock took a beating after the proposed Sprint/Nextel merger rumor hit the wires yesterday (just after market closing, during afterhours trading). Stock in the company (Ticker: MOT) traded down nearly 8% today.
If Sprint takes over Nextel, Motorola's iDEN business will take a huge hit. In Motorola's last quarterly earnings report filed with the SEC, the company notes it only has Nextel through the end of the year:
The Company’s [Motorola's] current handset and infrastructure supply agreements with Nextel Communications, Inc. (“Nextel”) extend through the end of 2004. The Company has started discussions with Nextel about extending the expiration date of the current handset and infrastructure supply agreements while the parties continue negotiations on a long-term master supply agreement. However, the Company cannot be assured at this time of the terms to be included in a supply agreement extension or Nextel’s continued exclusive long-term use of iDEN technology in its wireless business as Nextel considers next-generation technology options.
Other companies involved in the deal:
Update: Story updated to reflect market closing prices and quote from Motorola's quarterly SEC statement.