Two for the price of one?
US veteran technology company Motorola has bowed to increasing pressure from shareholders to split its handset and enterprise telco operations into separate, independent entities.
The Mobile Devices business and the Broadband and Mobility Solutions business are expected to complete their separation in 2009 as long as nothing happens to put a spanner in the works.
Greg Brown, Motorola’s president and CEO, said: ‘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.’
Brown’s management focus will probably be on the Broadband and Mobility Solutions half, as Moto is looking for someone else to head up the Mobile Devices bit. ‘We have undertaken a global search for a new chief executive officer for the Mobile Devices business,’ said Brown.
‘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.’ As long as someone else is in charge, it seems.
Some analysts have speculated that this could be the prelude to a mobile device joint-venture with a far-east technology company. If so, let’s hope it’s more Sony Ericson than BenQ Siemens.
Press release: Motorola Commences Process to Create Two Independent, Industry-Leading Companies
