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Motorola to Separate Phone Business |
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Written by Administrator
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Wednesday, 26 March 2008 |
SCHAUMBURG, IL – Motorola Inc. will separate its struggling handset business from other operations, forming two separate publicly traded companies.
The company said the handset business will make up one unit, while home
and networks products, and enterprise mobility solutions will be
bundled into a separate business. Pending shareholder approval, the
moves would take place next year.
The move is seen as a response to heavy pressure from its second-leading shareholder, Carl Icahn, to revamp the business.
"Our priorities have not changed with today's announcement," said chief
executive Greg Brown said in a statement. "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."
Motorola will seek a new chief executive for the Mobile Devices
business, which has suffered heavy fiscal and market share losses
during the past two years.
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