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Motorola Overhauls Separation Strategy

Feb 10, 2010, 4:47 PM by Eric M. Zeman

The Wall Street Journal today reports that Motorola has re-evaluated its plan to sell off different pieces of its business. Motorola originally hoped to sell off either the handset division, or its cable set-top-box and wireless networking division. Now, Motorola believes it will be better to sell the wireless networking business by itself, and then spin off its mobile handset and set-top-box businesses together as a separately traded company. Citing informed sources, the Journal says that this plan of action came together in the last days of January in a series of high-level meetings. If this plan comes to fruition, the new Motorola (handsets and cable STBs) would be one-third the size of Motorola's current organization.

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Comments

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cellgeek82

Feb 10, 2010, 11:00 PM

Question...

I may know my share of cell phones and computers etc...but I'm not a business buff. What will Motorola "spinning off" a part of its company mean? Does that mean, for example, if Motorola spun off its handset division that Motorola cell phones would be no more or just be separate from the major part of the company and still remain Motorola? I hate to sound like such a tard but I haven't totally understood this. Any intellectual replys would be appreciated.

irockash

I'll take a stab. They would spin off the handset division as its own company. We don't know if they'll keep the same name, but it would be independant from the rest of Motorola.

Kind of like PCD being UTStarcom's former handset division, they were...
(continues)

bluecoyote

Feb 10, 2010, 6:23 PM

I'm willing to guess...

that JUST as this comes to fruition they'll have to modify it again. They are a sad shell of a company.

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