People haven't had very much nice to say about a potential joint venture between Motorola Inc. [MOT] and Nortel Networks Corp. [NT], two telecom equipment makers that -- despite a wealth of assets and intellectual property between them -- have stumbled badly.

This Canadian Press report quotes an analyst who likens the potential combination to two runners who tie their legs together in a track race, while Fortune.com notes that this very same combination was attempted -- and failed -- 16  years ago.

"It was called Motorola Nortel Communications and it was a flop," Fortone notes. "Customers preferred dealing with the original companies and the two parents fought endless turf battles." The joint venture ended in 1993 after just a year in existence.

Then there's this: Nortel a year and a half ago entered a joint venture with Microsoft Corp. [MSFT] that has so far failed to produce any results for either company to brag about. It's a hazard inherent in all joint ventures: They can work, but unlike outright mergers, these partnerships are too loose and incohesive to get anything accomplished.

Unfortunately for two companies like Nortel, which has forever been the subject of takeover talk that's failed to materialize, and Motorola, now torn in a multitude of directions as it tries to repair its devastated cell-phone business and make strides in telecom equipment, such a joint venture might be the best option available. -Andrea Orr

See Feb. 11 story from Tech Confidential
See Feb. 11 post from CanadianPress.com
See Feb. 11 post from Fortune.com
See August 2006 post from TheDeal.com