Motorola To Break In Two
Expects To Create Separate Mobile Devices, Broadband and Mobility Solutions Companies
By Todd Spangler -- Multichannel News, 3/26/2008 4:20:00 AM
Motorola will spin off its struggling mobile devices business unit, as the company announced Wednesday that it plans to create two independent, publicly traded companies.
Forming two separate Mobile Devices and Broadband & Mobility Solutions businesses "will provide improved flexibility, more tailored capital structures and increased management focus--as well as more targeted investment opportunities for our shareholders," Motorola CEO Greg Brown said, in a prepared statement.
Motorola said the split, subject to closing conditions, would take place in 2009. The company said it expects the transaction to take the form of a tax-free distribution to shareholders.
In January Motorola announced it was considering the possibility of splitting off the mobile handset group, whose sales have declined for more than a year.
The company’s existing cable broadband and video product groups would be part of the proposed Broadband & Mobility Solutions business, which also includes the cellular infrastructure, enterprise wireless, and government and public safety businesses.
Dan Moloney is currently president of Motorola’s Home & Networks Mobility division, which the company formed in July 2007 and encompasses video, broadband and cellular networking equipment groups.
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