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Motorola to Split in Half

Article Comments  6  

Mar 26, 2008, 8:02 AM   by Eric M. Zeman
updated Mar 26, 2008, 8:10 AM

This morning Motorola announced that the company plans to divide into two separate companies, each of which will still be publicly traded. One entity will be the Mobile Devices portion of Motorola, and the second witll be the Broadband & Mobility Solutions portion. The former consists of its mobile phone business and the latter of the two supplies networking equipment and enterprise-grade handheld devices. The company is planning this move in an effort to regain lost shareholder value and stem unsatisfied shareholders from waging battles against the beleaguered company. It also hopes that by dividing the company, each company will be able to better focus on their core businesses. Motorola is conducting a world-wide search for a new CEO to run the Mobile Devices business. Motorola said that the plan still needs approval, and will be subject to analysis before completed. No time frame for the split was given.

Reuters »



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Mar 26, 2008, 9:34 AM


hopefully they will make a better phone that lasts longer than 2 months lol 🙄
I think this will cause the Palminization of Motorola, like Palm a once thriving cutting edge company, will fall into medico-racy.
azdurangoman said:
hopefully they will make a better phone that lasts longer than 2 months lol 🙄

Rumor has it their new corporate branding will be:

"our company may have split in half but our new handsets wo...

Mar 26, 2008, 5:34 PM

The new CEO position...

Who wants it?

I know they couldn't pay me enough to handle that business! 😛

Mar 26, 2008, 10:18 AM

Mobile Buyer Wasn't Found

To me, it seems like Motorola was looking to sell the device division but that no corporation would be willing to agree on a deal with Motorola. The next best thing to being unable to sell an unprofitable division is to spin it off and have it publicly traded. Then, the fate of the failing division which is now a company, is in the hands of the new management, and the shareholders are happier with the former "parent" company, now a different company from the failing company.
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