Motorola to split
Motorola officially announced today that it
will split their Mobile Devices business into an independent, publicly
The as yet un-named Motorola Mobile Devices
company will take the mobile handsets and accessories business, leaving
the Broadband and Mobility Solutions business which deals with network
infrastructure, set top boxes, wireless access systems, VOIP and
Motorola anticipate that this split will happen during 2009.
Greg Brown said "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.. We believe
strongly in our brand, our people and our intellectual property, and
expect that the Mobile Devices business will be well-positioned to
regain market leadership as a focused, independent company."
has been rumoured for a while that Motorola may want to exit the mobile
phone business altogether, however one unique problem for Motorola is
branding. For most consumers, the Motorola name is synonymous with
phones, so it is quite possible that the Motorola name will be carried
by the Mobile Devices business with the rest of Motorola taking on a
Creating a separate company also opens the way for a
merger or takeover of Motorola's Mobile Devices business. By 2009 the
firm will either have recovered somewhat or will be on its last legs,
so rival firms may be hoping to pick up the Motorola brand name for
next to nothing.
The full press release is here.