Question of the Day: Should Motorola and Sony Ericsson merge?

by Mike
Posted December 21st, 2009 at 3:55 pm

Mergers are one of the capitalist societies greatest assets. Some companies just need help. ‘Nough said. Think of two tech companies that you feel would most benefit from a merger. Don’t think of you’re typical successful giant overtaking a small startup. Instead, focus on mergers that would equally benefit both companies. If you’re thinking like WSJ’s Sanford Bernstein, the two top candidates for a merger if there were to be one would be Motorola and Sony Ericsson.

Just think, both companies are pretty decent in their own respects but lack the overall push or pizazz to truly become market leaders. SE designs some truly striking hardware. Software on the other hand isn’t their strong suite. Motorola similarly designs some rather notable hardware — though there’s is more rugged and utilitarian in approach — but is in stark contrast to SE’s more stylish and eye catching appeal. Still, the two could benefit one another.

Just because it makes sense for Moto and SE to merge doesn’t mean it would be easy. Moto is based in Chicago, SE is lightly peppered around Europe in a couple locations. The two becoming one would ultimately lead to some CEO shake-ups and body shifting to say the least. Would it be worth it?

According to Bernstein, a merger between the two would simultaneously boost market share and decrease operating costs to the tune of 10% (decrease in operating costs). Even with Moto’s recent success with the Droid, if past experiences are anything to go by, a 10% boost in market share in the current mobile playing field is nothing to shake a stick at.

So what do you say? Would a Sony Ericsson/Motorola merger be worth everyone’s while or is it an idea destined to doom from the start?

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