Motorola recently confirmed that the current plan includes “reorganizing” the company by Q1 2011. The mobile handset division will team up with set-top box division and spin it off into a publicly traded company.

With Motorola’s mobile handset business leaving little to be desired in the wake of successful Razr line, the company is apparently considering ways to differentiate its handset unit, and the answer might come in the form of combining it with its set-top box business. The newly combined unit could very well fit into “three screens” lifestyle touted by carriers, which would enable viewing content on TV, computer and mobile phone screens.

Motorola had apparently been looking to offload or spin off its mobile business as well, but the new handsets such as Android based Droid phone have introduced renewed hope in the long-term success of the division.

Handset and home business will keep hold of Motorola brand and will license it to the enterprise and networking company, whereas the wireless networking business will probably be sold.

More here.