Greg Brown, Motorola Inc.'s president and CEO, said the firm would create two independent, publicly traded companies as part of a strategic realignment (started on Jan. 31) of its mobile devices and broadband and mobility solutions businesses. Moto, which has yet to name a new CEO, said the separation will take the form of tax-free distribution to Motorola's shareholders. The split is subject to certain customary conditions and is expected to occur in 2009.
The Deal's Donna Block notes that at the core of Motorola's problems is
its failure to hit another home run to follow its Razr phone, which was
once very popular but ultimately succumbed to overexposure -- it has
since fallen behind its peers on third-generation, or 3G, handsets.
In February, activist investor
Carl Icahn served notice that he is nominating four directors to Motorola's board of directors. They are Frank Biondi Jr., William R. Hambrecht, Lionel C. Kimerling and Keith Meister. Also in February, there was even talk of a
$10 billion joint venture between Moto and Nortel Networks Corp., combining their wireless infrastructure units. -
Baz HiralalSee the press releaseGo to the post from Tech Confidential
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