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Friday, 01 February 2008 11:11

Motorola might break up

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Spinning off handset unit


Troubled
mobile phone maker, Motorola, is considering separating the handset unit from its other businesses in an effort to snap the company from a deep slump that followed its meteoric success with the Razr.

Motorola has had more than a year of dismal results and declining market share. Shareholders have been calling for tough action and the idea of spinning off the handset division is fairly popular. In a statement, Motorola indicated that separating the mobile devices business, which is dominated by cell phones, would permit each business to grow and better serve its customers.

Two smaller businesses that exist under the company umbrella are home and networks, which sell TV set-top boxes and modems; and enterprise mobility solutions, which sells computing and communications equipment to businesses.

It would appear that Motorola is considering either a spinoff, joint venture or outright sale.
Last modified on Saturday, 02 February 2008 05:02
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