Goodbye, Moto: Motorola Will Split Into Two Companies
Acting under the pressure of a lawsuit from activist investor Carl Icahn, the struggling mobile phone giant Motorola has agreed to effectively split into two separate companies, with its mobile phone operations comprising one public traded company, and all of its other businesses comprising another, the AP reported Wednesday.
The separation will take place at some point in 2009, the company said in its announcement of the move. A new CEO will be hired for the handset end of the business, with Gary Brown remaining the chief executive of the non-handset company, whose core businesses will include Motorola’s “Enterprise Mobility, Government and Public Safety, and Home and Networks” businesses, the company said.
“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,” Brown said in a statement.