Motorola to spin off mobile business
Motorola mobile and home entertainment device business to become Motorola Mobility
Motorola has announced that it will spin off its mobile devices and home products business into a new entity called Motorola Mobility.
The company had announced its intention to split the company's core mobility solutions and enterprise business in February, but had not previously confirmed which business would be spun out.
The new company Motorola Mobility will make mobile phones and home entertainment equipment including set top boxes. Sanjay Jha, currently co-CEO of Motorola and CEO of Motorola's Mobile Devices and Home units will lead the new entity.
The remaining businesses in enterprise and carrier infrastructure, including wireless LAN gear, public safety communications equipment and service-provider networks, will be renamed Motorola Solutions, and will be led by Greg Brown, co-CEO of Motorola and CEO of the current divisions.
Motorola has filed a statement with the US Securities and Exchange Commission that it intends to break up the business in Q1 next year, giving a tax-free stock dividend of shares to current shareholders.
Jha commented: "Mobile Devices has made significant progress in 2010, and we are confident that the Separation is the right strategy for Motorola, our stockholders, our customers, our partners and our employees. Together, Mobile Devices and Home are uniquely positioned to address the opportunities resulting from the convergence of media, mobility, the Internet and computing."
"Motorola Solutions will be a world-class company composed of two great businesses. The Enterprise Mobility business is a worldwide leader in providing public safety and enterprise mobility solutions. Our Networks business has a proven track record of technology leadership and solid operating performance. We expect the Separation will further enable these businesses to address the needs of our customers and partners around the world. I thank our dedicated employees, valued customers, and other stakeholders for their continued support," added Brown.