Motorola Earmarks $3.5 Billion for Handset Unit Spinoff
Motorola has said that it will set aside $3.5 billion for the handset and set-top box unit that it plans to spin off during the first quarter of 2011. Motorola will split its remaining businesses into two entities, with the phone and cable box business forming one, and its enterprise computing business forming the other. Motorola wants the freshly created mobile unit to have the best chance for success possible, so it will part ways with a $3.5 billion cash infusion earmarked for operations and acquisitions. Motorola's legacy business will assume all the existing debt and pension costs moving forward. Motorola has banked its mobile business' future success on Google's Android platform, and so far appears to be making a turn-around.