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News
Motorola Spins Off Handset Division
Tuesday, March 25th, 2008 at 4:00 PM - by Jeff Gamet
Motorola revealed on Wednesday that is splitting off its handset division as its own company. The company plans on completing the process of turning its Mobile Devices and broadband & Mobility Solutions divisions into a separate publicly traded company by the end of 2009, according to MarketWatch.
"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," company representatives said.
The move to shed its handset division comes as the company continues to lose cell phone market share. The plan could, however, fall apart if something goes wrong during the financial, tax and legal analysis process.
CEO Greg Brown added "Our decision to separate our mobile-devices and broadband and mobility solutions businesses follows a review process undertaken by our management team and board of directors, together with independent advisors."
Motorola has dropped from the number one cell phone maker to third place world wide. Whether or not the split will help Motorola better compete with the likes of Nokia, Research in Motion, and now Apple, remains to be seen.
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