Motorola stock took a beating last week after the Sprint / Nextel merger put fears into investor's minds (Nextel is a large Motorola customer). But analysts have now decided that the merger really wouldn't change much at Motorola:
Of course, Motorola isn't suddenly going to lose all of its Nextel business on a drop-dead date. Nextel would still need to run its business while regulators review any proposed deal. Nor would Sprint be able to phase out Nextel's network immediately.
At the same time, Motorola has been trying to broaden its ties to Sprint. Last week, the company signed a roughly $450 million deal to help Sprint upgrade its wireless network to offer faster service.
This was great news for Motorola stock--shares of the company (MOT) surged more than 5% during trading on Monday.
Motorola also announced a reorganization plan aimed at cutting costs.