Motorola splits operations

July 28, 2008 - Motorola's board of directors has agreed to split the company's operations into two publicly-traded entities to separate its healthy broadband and home networks operations from its ailing mobile division.

The two new entities will be called Broadband & Mobility Solutions, covering Motorola's enterprise, government, pubic safety and home and networks business, and Mobile Devices, which will focus on the design, manufacturing and sales of mobile handsets and accessories. “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, President and CEO of Motorola.

Shareholders will receive shares in both companies, if the move is approved by the relevant regulatory bodies, and Motorola hopes that the transaction will be completed in 2009. The move is thought to have been taken due to shareholder pressure following continued poor results for the company's mobile operations, and could even be preparatory to a sale of the ailing division.