Motorola will split into two separate publicly traded companies

by Gaurav Kheterpal on February 14, 2010

Motorola Splits Into Two

Motorola Splits Into Two

Motorola has recently announced that it would split in two separate publicly trading companies in 2011. This is not surprising considering that Motorola had announced its intentions to spin off its mobile division into a separate company in 2008 itself. It’s well known that Motorola mobile phone division was facing a tough time in 2008 and the company was betting on the success of RAZR for a revival of fortunes. Unfortunately, that did not happen and what followed was – global recession and a tough battle of survival for all mobile manufacturers.

Now, the proposed split would result in two companies – one will inherit Motorola’s mobile and home business while the other will feature Motorola’s enterprise mobility and network business. Sanjay Jha, the current co-chief executive officer will be the CEO of mobile & home business company with immediate effect. Greg Brown, also the current co-chief executive officer of Motorola will be the CEO of enterprise mobility and network business with immediate effect. However, both the companies will retain and continue to use the ‘Motorola’ brand name even after separation.

Motorola has aggressive plans for 2010 and it plans to introduce as many as 20 new mobile phone models into the market. The split news has evoked mixed reactions from industry analysts – while some believe that this might be the perfect move to revive Motorola’s mobile division fortunes, others believe that the company would have been better off to sell its struggling set-top box unit. I, for one, am surprised that it took so long for Motorola to take this inevitable decision. Clearly, Motorola is betting big on offering consumer solutions for all kinds of electronic devices under one roof and that’s a smart strategy to tap a wider customer base.

Whether the move will manage to reverse Motorola’s declining sales curve remains to be seen. As they say, ‘time will tell’. I’ll wait and watch!

The conference call webcast is available here.

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Written by: Gaurav Kheterpal. Follow by: RSSTwitter,, or Friendfeed

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