As it was unveiled Tuesday, Motorola has sold its European cable modem business to Compal Electronics Inc.

The news appeared amid reports that Motorola is looking to bid it's Home and Networks business which includes television set-top boxes and wireless network equipment as well as broadband modems.

Motorola intends to continue to uphold the cable modem technology used for high-speed Internet access, in the Americas and Asia Pacific region. The company started transferring inventory to Compal for the sold business on January 5.

Avian Securities analyst Matthew Thornton measured selling of the Home and Networks business in pieces would make sense as he does not expect one buyer to snap up the whole unit.

Though the company still has not disclosed the financial details of the deal, Thornton estimated that Motorola's European cable modem business brings in about $200 million in annual revenue, representing a small percentage of the home unit's total annual revenue of about $3.9 billion.