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Motorola Ready To Split Again

2/11/2010 04:57:48 PM Eastern
Schaumburg, Ill. - Motorola's long-delayed breakup into two public companies is back on track, with the company targeting a first-quarter 2011 separation whose structure will be a little different than announced in early 2008.

The latest announcement follows Motorola's third consecutive quarterly net and operating profit, posted in the company's fiscal fourth quarter on significantly lower losses by the wireless-handset division. The handset group reduced its own operating losses for the fifth consecutive quarter, and the company predicted that in the fourth quarter of 2010, the handset division would return to profitability.

In 2008, the handset business was to be spun off as a separate company, but now one of the spun-off companies will market handsets and digital devices for the home, including cable set-top boxes, cable and wireless modems, and other "end-to-end video, voice and data solutions," the company said.

 The second company will make and market enterprise, government and public-safety products and network infrastructure products, including cellular and high-speed broadband infrastructure. Products include two-way radios, mobile computers, secure public safety systems, scanning products and RFID.

 Both entities will use the Motorola brand, with the new mobile device and home business expected to own the brand and license it royalty-free to the enterprise mobility solutions and networks business, the company said.

 The new mobile device and home business will "target growth opportunities from convergence of mobility, media and the Internet," the company said. The other business will "focus on mission- and business-critical solutions for enterprise, government and wireless operators."

 Effective immediately, Sanjay Jha, co-CEO of Motorola, has been named CEO of the mobile device and home business. Greg Brown, also co-CEO of Motorola, has begun serving as CEO of the enterprise mobility solutions and networks businesses.

Jha said the new mobile business would bring together "two highly complementary" groups that will "be best positioned to lead in the convergence of mobility, media and the Internet." The business's smartphones and end-to-end video content delivery capabilities "will enable us to provide advanced mobile media solutions and multi-screen experiences for our customers," he said.

The group will work with network operators to "enable more advanced personalized services that leverage the capability of expanding wireless and wireline broadband availability," he added.
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