Motorola Invests $10 Mln in Proxim for Internet Technology
Bloomberg News
Jun 2 1999 5:57PM ET
Motorola Invests $10 Mln in Proxim for Internet Technology
Schaumburg, Illinois, June 2 (Bloomberg) -- Motorola Inc., the No. 2 cellular telephone maker, said it will invest $10 million in home-networking company Proxim Inc. to develop wireless networking technology for high-speed Internet access.
Schaumburg, Illinois-based Motorola said the technology will use the high-speed Internet access that its cable modems provide and expand that access to other devices through Proxim's wireless products.
Intel Corp., the largest chip maker, said in April that it had taken a 2.9 percent stake in Proxim, worth about $10.4 million at the time, to develop networking products. Forrester Research Inc. expects the home-networking market to rise to as much as $2 billion from a couple hundred million now as computers and other Internet-connected devices proliferate in homes.
''Consumers will be able to extend the value of their cable modem access with wireless in-building connectivity using industry-standard cable modem and wireless technologies,'' said Randy Battat, senior vice president and general manager of Motorola's Internet and Networking Group.
As part of the agreement, Motorola said it has warrants to buy additional shares of Mountain View, California-based Proxim.
Motorola and Proxim are part of the HomeRF Working Group that is establishing industry standards for such wireless networking devices. Other members include Intel, Compaq Computer Corp., Hewlett-Packard Co., International Business Machines Corp. and Microsoft Corp.
Motorola shares rose 3 15/16 to 82 11/16. Proxim rose 2 1/8 to 41 1/2.
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