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