Motorola Splits Into Two!

Motorola has decided to split the company into two independent, publicly-traded companies. The decision taken by the company will separate Motorola's mobile devices business and its broadband and mobility solutions business. The decision was made under tremendous pressure from Carl Icaan, a Motorola shareholder who contended that the company should split from its handheld devices business, according to sources.
The creation of the two stand-alone businesses is expected to take the form of a tax-free distribution to Motorola's shareholders and is expected to be completed in 2009, says the company."Creating two industry-leading companies will provide improved flexibility, more tailored capital structures and increased management focus – as well as more targeted investment opportunities for our shareholders," said Greg Brown, president and chief executive officer, Motorola. The mobile devices business will supply multi-mode, multi-band communications products and technologies. The business designs, manufactures and sells mobile handsets and accessories globally with integrated software solutions. It also licences a portfolio of intellectual property. Recently Stu Reed, president of the company's mobile devices business, resigned from the company, after Motorola lost its market share in mobile devices market. The company is now on the lookout for a new CEO for its mobile devices division."We remain committed to improving the performance of our mobile devices business by delivering compelling products that meet the needs of customers and consumers around the world. As part of that effort, we have undertaken a global search for a new chief executive officer for the mobile devices business," added Brown.The broadband and mobility solutions business manufacture, design, integrate and service voice and data communication solutions and wireless broadband networks for enterprises and government and public safety customers worldwide. These businesses also provide end-to-end digital and Internet Protocol (IP) video solutions, cellular and high-speed broadband network infrastructure, cable set-top receivers and associated customer premise equipment for residential and commercial wireless network system access.