Motorola Inc. has announced plans to break up into two independent publicly traded companies, separating its Mobile Device business and it Broadband & Mobility Solutions business. The decision by the board of directors comes after an evaluation of the structural and strategic realignment of Motorola’s businesses begun at the end of January.
“Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus—as well as more targeted investment opportunities for our shareholders,” said Greg Brown, Motorola’s president and CEO.
“Our priorities have not changed with today's announcement,” added Brown. “We remain committed to improving the performance of our Mobile Devices business by delivering compelling products that meet the needs of customers and consumers around the world. As part of that effort, we have undertaken a global search for a new chief executive officer for the Mobile Devices business. We believe strongly in our brand, our people, and our intellectual property, and expect that the Mobile Devices business will be well-positioned to regain market leadership as a focused, independent company.”
The Mobile Devices business designs, manufactures, and sells mobile handsets and accessories globally with integrated software solutions that incorporate the latest personal communications technologies. It also licenses a portfolio of intellectual property.
The Broadband & Mobility Solutions business includes Motorola’s Enterprise Mobility, Government and Public Safety, and Home and Networks businesses. These businesses manufacture, design, integrate, and service voice and data communication solutions and wireless broadband networks for enterprises and government and public safety customers worldwide. They also provide end-to-end digital and Internet Protocol video solutions, cellular and high speed broadband network infrastructure, cable set-top receivers, and associated customer premise equipment for residential and commercial wireless network system access.