American mobile phone giant Motorola Inc. has today revealed that it is to split its business down the middle in order to create two independent, publicly-traded companies.
Motorola announces that it\'s splitting its business in two. Credit: Motorola.
According to an official announcement released by the Illinois-based technology giant, the Motorola board of directors has begun the process of structurally and strategically realigning its business to exist as Motorola Mobile Devices and Motorola Broadband & Mobility Solutions.
“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,” explained Greg Brown, Motorola’s president and chief executive officer, regarding the split.
Those shareholders are expected to benefit from the division through a tax-free distribution that will see them holding shares in two separate publicly-traded companies bearing the Motorola name.
The first of these, Mobile Devices, is described as “an industry leader in multi-mode, multi-band communications products and technologies” focusing on mobile handsets, related accessories and integrated software solutions incorporating the latest personal communications technologies.
The Broadband & Mobility Solutions business includes Motorola’s Enterprise Mobility, Government and Public Safety, and Home and Networks elements, which manufacture, design, integrate and service voice and data solutions along with wireless broadband networks for enterprises and government and public safety customers worldwide.
“Our priorities have not changed with today’s announcement,” added Mr. Brown. “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.”
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