Openwave may sell messaging, mediation businesses

Openwave Systems, a mobile technology software company based in Redwood City, Calif., is considering selling its mediation and messaging businesses and has hired Jeffries and Co. to advise the company. The news sparked a 5.6 percent increase in mid-day trading, increasing its share price to $1.87.

The company's messaging and mediation businesses made up 58 percent of Openwave's total revenue in the fiscal first quarter, which ended in November.  Although it's unclear what companies might be interested in purchasing Openwave's businesses, Wedbush analyst Scott Sutherland said that it could be an appealing move for certain firms. "The messaging business could be interesting in a rollup play or for a private equity buyer, while we see the mediation business as interesting for strategic buyers," said Sutherland in a note to Reuters.

Openwave will focus on its intellectual property initiative, which includes its portfolio of 200 patents for mobile internet and mobile devices. Sutherland told Reuters that Openwave's patents could be valued at about $300 million.

Last year, Openwave filed lawsuits against Apple (NASDAQ:AAPL) and Research In Motion (NASDAQ:RIMM) claiming alleging the companies violated its patents.

For more:
- see this AP article
- see this Reuters article

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