Motorola Plans Split into Consumer and Business Companies
Motorola has announced a planned split by its first quarter 2011. The mobile handset and set-top box sector will be a separate publicly traded company from the enterprise solutions and networking business.
The measure was prompted by the company's ongoing quarterly losses. The consumer sector with the lion's share going to the mobile phone market had to combat some heavy losses in the previous quarters. Motorola most recently settled on the Google Android system for its smartphones in a competitive marketplace and is betting its future on it.
Both companies will still continue to be Motorola, with one firm owning the names and licensing and providing them royalty-free to the other. Stockholders will get a tax-free split of their shares between the two companies. Of course, the SEC will need to authorize the move.
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