Motorola begins its plan to split Mobility from Devices

There will be two Motorolas, once all this is done, and both could very well retain the same brand, logo, and parent or co-parent company. But they will be two companies, and the Mobile Devices business will have new leadership.

Former CEO Ed Zander stepped down last November, leaving his replacement Greg Brown to execute a systematic executive housecleaning, with "execute" being the operative word. But when that's done, Brown himself won't be the leader of the future company currently being referred to as Motorola Mobile Devices.

Brown will continue to lead what's now being called Motorola Broadband & Mobility Solutions, which is a moniker just begging for a substitute. It's clear that the company's efforts in driving WiMAX, Mobile WiMAX, and LTE technology will be transferred to the B&MS company, though the Mobile Devices company will get some of Motorola's current IP portfolio related to handset technology.


"Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus," stated current CEO Brown this morning, "as well as more targeted investment opportunities for our shareholders."

But Motorola did give itself an out this morning, leaving open the possibility that the "un-merger" might not take place or that shareholders may eventually decide against it. That possibility was alluded to in the statement, which reads in part, "The Company expects that the separation of its businesses, if consummated, would take place in 2009. The Company noted that there can be no assurance that any separation transaction will ultimately occur or, if one does occur, its terms or timing."

For more: Which company will be 'Motorola' in 2009?

One Response to Motorola begins its plan to split Mobility from Devices

© 1998-2022 BetaNews, Inc. All Rights Reserved. Privacy Policy - Cookie Policy.