Motorola splits in two: Mobile Devices, and Broadband and Mobility Solutions

The board of directors has agreed to split Motorola into two independent, publicly-traded companies. The new entities will be called Mobile Devices and Broadband & Mobility Solutions. The Mobile Devices business will focus on the design, manufacturing, and sales of mobile handsets and accessories globally. The Broadband & Mobility Solutions business covers Moto's enterprise, government, public safety, and home and networks business. Greg Brown, Motorola's president and CEO, says the reason for the split is easy, "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." Right, weren't those the reasons for the Palm split? The matter is of course subject to regulatory approvals, but Motorola hopes that the transaction is complete "in 2009."

P.S. We're not sure whether this is a sad or happy Moto logo day. Regardless, we went with sad until we see signs of a turnaround.

[Thanks, Matt E.]

[Dash-2 @ Mar 26th 2008 8:01AM]

Cause those don't sound almost exactly alike...

[WingingRoads @ Mar 27th 2008 11:10AM]

sorry, test

[bob e @ Mar 26th 2008 8:07AM]

What happens to the stockholders?
Do they get shares in each?

[Scott Equine @ Mar 26th 2008 9:27AM]

...likely a new entity is created for the handset business and existing shareholders simply receive a proportionate stake in that.
...perhaps they'll start making WiMax phones for the new ComcastTimeWarnerSprintClearWire mobile service company.. in the same way they make phones for Sprint's iDEN business?

[quxjox @ Mar 26th 2008 8:21AM]

Motorola mobile looks like in deeper waters then it seems...read in Economic Times(India) that their senior most software guy(responsible for all mobile softwares)quit along with many others in R&D of Motorola India.

Their UI was crap and they relied too much on the thin flips...

Hello Moto...Goodbye Moto!!

[yoshi @ Mar 26th 2008 9:22AM]

If their UI was crap, is it really a bad thing that the people responsible for it quit? Anyway, it's a sad day when the suits drive a cool tech company into the ground.

[Chris @ Mar 26th 2008 1:01PM]

You obviously aren't an Engineer or you would know that in most companies, the ultimate responsibilities for new product ideas and development are usually above Engineering. I'm a design engineer and there are lots of things I would like to do to improve the product I work on but it would never be approved due to the cost increases they would bring. This guy wasn't fired, he quit. He probably understood the problems with their OS but couldn't do anything about it because the suits were too resistant to change or investment of time/money.

[yoshi @ Mar 27th 2008 12:10AM]

Actually, I am an engineer. The difference is that we're making different assumptions. For instance, you're assuming that because "he quit", he was an excellent engineer who was misunderstood by management. Personally, I don't know either way. However, I have seen a BOATLOAD of crappy engineers in my time who would much rather have "I quit" on their resume than "I was fired".

I have no doubt that the reason Motorola is folding is because of management. No matter how great or how crappy the UI was, Motorola would still be dying.

But, regarding the UI, we're talking about a UI for a freakin cellphone. This isn't some great new feat of engineering. It didn't have to be the next best thing after the iPhone. It didn't even have to be anything new. It just had to be not crap. If your engineering team can't take the crap out of such a simple product while trying to convince management about your wondrous new ideas, you probably should just hang up your hat.

[Neoprimal @ Mar 26th 2008 8:32AM]

OOh, very ATT-esque no? Although completely different companies at the core....ie: one service oriented (ATT) and the other product oriented (Moto).
ATT was split up and decades later managed to come back together to be the largest and most powerful telecommunications entity in North America. This could either be a good or bad thing for Moto I suppose, but If Moto is successful in pulling it off the way ATT did (each part slowly merging with other companies *some even being taken over by other companies*, changing, growing and then everything re-merging eventually), perhaps they will come back under one roof a bigger, better(?) company.

[engadgetier @ Mar 26th 2008 8:53AM]

That seems possible, the only thing is that AT&T was split up because the US government didn't want a monopoly, so they were forced to split into the baby bells and AT&T, with AT&T controlling the long distance communications and the baby bells controlling the local communications. And back a few years ago, SBC bought the original AT&T and decided to keep the name, and since then have been buying back all the old baby bells, and even cingular wireless. So, you're thought may be a good prediction. :)

[fanman @ Mar 26th 2008 8:42AM]

FAIL

[y3k.nik @ Mar 26th 2008 8:45AM]

Looks like an indication of another nail in motorola's coffin.

Sad, I liked their phones.

[Praneet @ Mar 26th 2008 8:53AM]

I don't even know what the big deal is.... i don't even like Motorola phones. (but then again that is my opinion)

[Keegan @ Mar 26th 2008 8:57AM]

poop

[Todd @ Mar 26th 2008 9:06AM]

Sad. Moto used to be so great, so ahead of the pack ( 90s Star Track, the Ming, the RAZR ). I will miss Moto hardware, but it's not like they didn't have the resources to compete. I expect a nostalgic "Motorola Museum" to be built, featuring all that great hardware from yesteryear, soon.

[Alex Rodriguez @ Mar 26th 2008 12:20PM]

There is already a Motorola museum on the corporate campus in Schaumburg, IL.

[tcc3 @ Mar 26th 2008 9:18AM]

They should go back to making in car record players. =)

In all seriousness, consumer electronics was never their strong suit. They had a few hits like the Razr and Star-Tac, but its just not their game.

They have a bigger legacy in solid state electronics. The 68000, the Power PC, countless IC components. Do they even have a chip making division any more?

[brokenkeyboard @ Mar 26th 2008 10:08PM]

its also separate now: freescale. And they actually seems to be doing reasonably well: pretty big company, people buying their stuff, no implosions, etc.

[Tombio @ Mar 26th 2008 9:22AM]

Sounds like Motorola mobile phones are heading for extinction. Not that they've ever been too popular in Europe anyway.

[Meezzio @ Mar 26th 2008 9:43AM]

Motorola spun off their processor arm a few years back - its now called Freescale.

Leaving Moto with... nothing.

[dcny @ Mar 26th 2008 9:45AM]

2002 Hello Moto

2008 Bye Bye Moto

[austin @ Mar 26th 2008 6:30PM]

2002?

[dcny @ Mar 26th 2008 8:30PM]

@ austin was trying to figure out when they did those Hello Moto commericals

[Joe Backo @ Mar 26th 2008 10:01AM]

great news?

[Chris B @ Mar 26th 2008 10:04AM]

Wonder what will be the effects for the Mot share holders -> will they get even numbers of shares on both new entities? I wish..

[Scott Equine @ Mar 26th 2008 11:00AM]

Chris B
i would expect so yes. But of course the original shares will be worth that much less after stripping out the handset business. ie. it should be a zero sum game (except that you'd now have the choice to dump one part of the business and keep the other).

[Lifelion @ Mar 26th 2008 11:13AM]

I have the name for the banana phone company! "Mojorola"

[whatishalo? @ Mar 26th 2008 12:05PM]

Maybe they should just quit the electronics industry and make motocycles instead

[Bill Koslosky, MD @ Mar 26th 2008 1:00PM]

One TWIT pundit is saying that Motorola might snatch up Palm. But, this was before the split was announced.

[AlphaTeam @ Mar 26th 2008 5:40PM]

Is this so one division's decline won't affect the other?

[FTWTF @ Mar 27th 2008 2:28AM]

no love for the razr3?

[Rick @ Mar 27th 2008 3:07AM]

Really? why bother?

[Rick @ Mar 27th 2008 3:07AM]

New Board and CEO needed...

[belrod @ Mar 27th 2008 11:38PM]

i'm not surprised that people are quitting.

motorola's going down. people are jumping ship.

[T @ Mar 28th 2008 6:26PM]

Me wantum go on trip . . . .

[Bhadresh Gohil @ Mar 30th 2008 11:42AM]

This could be the end of a giant. Bhadresh Gohil

[tiuk @ Mar 30th 2008 7:26PM]

Yeah, still won't be buying any more Motorola phones.