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Motorola to split in two

Published by Rafe Blandford at 15:38 GMT, March 26th 2008

Motorola today announced that it had commenced a process to split itself into two seperate companies: a mobile device business and a broadband and mobility solutions business (reflecting current divisions within the company). The move seems likely to avoid a direct sale of the mobile device business, but a joint venture with another company remains a distinct possibility.

The move is likely to give the mobile device business greater flexibility in negotiating with potential partners and inidcates that Motorola is very serious about restructuring the company.

More information in the full press release:

“Our decision to separate our Mobile Devices and Broadband & Mobility Solutions businesses follows a review process undertaken by our management team and Board of Directors, together with independent advisors,” said Greg Brown, Motorola’s president and chief executive officer. “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.”

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Categories: Industry
Platforms: General, UIQ 3

News Discussion

stuclark
Interesting news in light of the upcoming job losses at their Birmingham site.
krisse
Quote:
a joint venture with another company remains a distinct possibility.
We're right back to that conversation we had a while back!

Who on earth could they partner with though? Perhaps someone new to the mobile phone business who needs an experienced player to work with?

I'll say this because it's an intriguing though unlikely possibility: Apple and Moto.

Sure, Apple's had a lot of good press with the iPhone especially in the US, but it's still just a high-end low-selling model and extremely unlikely to get them much market share. Moto on the other hand has sold low-end and mid-range stuff for donkeys years and was until recently the second-largest phone maker.
Sergey Zak
So who's spinning off who? Is it the network business parting with the mobiles or vice versa?
The way I see it - everybody is spinning off the telecom, to increase the innovation rate in the mobile business which becomes (or should become) competitive to the Internet companies. Within the telecom companies, the Packet Core (not voice) becomes the prime revenue source, along with the Value Added Services.
The 'spun off' telecom gets to merge...as they say, to 'become a bigger/tougher competitor in the market', but in fact just to keep the shares up after such operation.
Anybody connect?

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