Skip Links

Network World

  • Social Web 
  • Email 
  • Close

(Comma separation for multiple addresses)
Your Message:

Motorola to split in two

By Mikael Ricknas , IDG News Service , 03/26/2008
  • Share/Email
  • Tweet This
  • Comment
  • Print

Motorola will split into two companies, one making mobile devices and the other making network infrastructure, the company announced Wednesday.

The companies will operate separately and be publicly traded. Motorola expects the split to take place in 2009, if it gets the necessary approvals.

The decision follows a review of the company's mobile phone business, announced Jan. 31 and conducted by the management team, the board of directors and independent advisors. Motorola is following in the footsteps of Nokia, which put its network activities into a joint venture with Siemens, and of Ericsson, which put its mobile phone business into a joint venture with Sony.

The split will provide improved flexibility, more tailored capital structures, and increased management focus -- as well as more targeted investment opportunities for shareholders, according to Greg Brown, Motorola's president and chief executive officer.

Based on current plans, the creation of the two stand-alone businesses is expected to take the form of a tax-free distribution to Motorola's shareholders, subject to further financial, tax and legal analysis, resulting in shareholders holding shares of two independent and publicly-traded companies, Motorola said.

  • Share/Email
  • Tweet This
  • Comment
  • Print

Comments (2)
Login
Forgot your account info?

another fall out?By Anonymous on March 26, 2008, 4:29 pmThis reminds me the days when Lucent spin-off from AT&T. Then AT&T "gone", then Lucent "gone".

Reply | Read entire comment

New company namesBy Anonymous on March 26, 2008, 4:37 pmI've heard the new company names will be Lead and Brick.

Reply | Read entire comment

View all comments

Add comment
Anonymous comments subject to approval. Register here for member benefits.
Have a NetworkWorld account? Log in here. Register now for a free account.

Videos

rssRss Feed