Mobile Devices Business and Broadband & Mobility Solutions Business to split
Just last month, we wondered if it was time to say Goodbye Moto when Motorola announced that it was considering the separation of Mobile Devices from its other businesses.
Today, Motorola has taken action against its faltering businesses and the company's board of directors have announced plans to create two independent companies; Mobile Devices and Broadband & Mobility Solutions.
Greg Brown, Motorola’s president and chief executive officer said:
"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. 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."
If the current plans are approved, the two independent businesses will take the form of a tax-free distribution to Motorola's shareholders, resulting in shareholders holding shares of the two companies:
- The Mobile Devices business is an industry leader in multi-mode, multi-band communications products and technologies. The business designs, manufactures and sells mobile handsets and accessories globally with integrated software solutions that incorporate the latest personal communications technologies. It also licenses a portfolio of intellectual property.
- The Broadband & Mobility Solutions business includes Motorola’s Enterprise Mobility, Government and Public Safety, and Home and Networks businesses. These businesses manufacture, design, integrate, and service voice and data communication solutions and wireless broadband networks for enterprises and government and public safety customers worldwide. These businesses also provide end-to-end digital and Internet Protocol (IP) video solutions, cellular and high speed broadband network infrastructure, cable set-top receivers, and associated customer premise equipment for residential and commercial wireless network system access.
The whole plan is of course still subject to regulatory approval but Motorola expects the separation of its businesses to take place in 2009.
Official press release: Motorola Commences Process to Create Two Independent, Industry-Leading Companies
