Motorola has just announced that they intend to break the company in two. The two business units will operate independent of one another as two separate, publicly traded companies.
The phone manufacturer has been under extreme pressure from investors to generate increased profits and improve market share. The company let go of former CEO Ed Zander in this effort, and has even gone as far as to quietly solicit selling its handset business outright.
The new businesses will be divided between Mobile Devices and Broadband & Mobility Solutions.Â This division appears to be clearly-cut to give Mobile Devices handset and cell phone operations, with the remainder of the company belonging to Broadband & Mobility Solutions. For example, while cell phones are to be made in the Mobile Devices sector, core network technology (such as WiMAX base stations, for example) will be built by the Broadband & Mobility Solutions sector.
Motorola has been quiet on any further details, only citing that the process will require regulatory approval, and that they are actively restructuring the boards for both future companies. Motorola did not comment on any names for the Mobile Devices or Broadband & Mobility Solutions companies.