Motorola Splits into Two

title="motorola"After a year of sales performance going downhill and plunging stocks, Motorola has decided it’s better off being split into two — Mobile Devices and Broadband & Mobility Solutions.

Actually, it’s the Mobile Devices unit that has been performing very poorly (even lost to Samsung for 2nd spot in the phone market) that rumors back in February it’s selling that division off.

Obviously, the chances of the handset division to be able to recover is slimming and separating that chunk from the mother ship is a wise strategy for Motorola to avoid further decline in their stock value.

The two new entities with be broken down as such:

  • 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.

Official press release posted here. Are we starting to see the end of Motorola as a mobile handset company? At least the RAZR will go down in history as one of the hottest selling mobile phones of all time.

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  • BrendanT

    Hmmm, I wonder whether the decision to create two independent publicly listed companies might be to do with the fact that until now the mobile devices business has had limitations on the ways it can raise capital? Perhaps this split may provide the funding required to launch a new and exciting range of cell phones and net phones?