Motorola eyes $4.5 billion home/networks unit sale: sources

NEW YORK (Reuters) - Motorola Inc is in the early stages of looking into a potential sale of its $4.5 billion television set-top box and network equipment business, two sources said on Wednesday.

Motorola is in the early stages of seeking buyers for the unit, whose suitors include private equity firms and other communications equipment makers, said one source familiar with the situation.

Motorola may decide to keep the unit in the end, said the source, who was not authorized to speak with the media.

J.P. Morgan Chase & Co and Goldman Sachs Group Inc are advising Motorola on the possible sale, the source said.

J.P. Morgan and Goldman Sachs declined to comment.

Motorola, which has been losing market share in its cellphone business for years, declined to comment, but said it was still focused on its previously stated plan to separate its handset business from the rest of the company.

Analysts said there could be a lot of interest in the home and networks unit, particularly because Motorola has a strong market share in the set-top box segment, where it is bigger than Scientific Atlanta, owned by Cisco Systems Inc.

But RBC analyst Mark Sue said that a divestiture of any of Motorola's other business units could hurt Motorola's money-losing handset business.

"The mobile devices business still needs the rest of the businesses to fund its operations. It hasn't really recovered fully yet so it would be a little too early to cut off the lifeline," Sue said.