In a move to bolster its fortunes, Motorola is to split into two independent, publicly-traded entities that would separately market its mobile devices and broadband and mobility systems.
Based on current plans, the creation of the two stand-alone businesses is expected to take the form of a tax-free distribution to Motorola’s shareholders, subject to further financial, tax and legal analysis, resulting in shareholders holding shares of two independent and publicly-traded companies.
The first of these – the mobile devices business – will be responsible for designing, manufacturing and selling mobile handsets and accessories as well as licensing a portfolio of intellectual property.
The second – the broadband and mobility solutions business – which includes Motorola’s enterprise mobility, government and public safety and home and networks businesses, will be manufacturing, designing, integrating and servicing voice and data communication systems and wireless broadband networks.
The split would be subject to conditions that include the filing of required documents with the Securities and Exchange Commission.
The company expects that the separation of its businesses, if consummated, would take place in 2009.