Motorola to split into two separate companies

Motorola today announced that the Company’s Board of Directors has started the process of creating two independent, publicly-traded companies.

Today’s decision follows the announcement the company made a couple of months ago with regard to the structural and strategic realignment of its businesses.

“Our decision to separate our Mobile Devices and Broadband & Mobility Solutions businesses follows a review process undertaken by our management team and Board of Directors, together with independent advisors,” said Greg Brown, president and CEO of Motorola.

“Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus – as well as more targeted investment opportunities for our shareholders.”

Based on current plans, the creation of the two stand-alone businesses is expected to take the form of a tax-free distribution to Motorola’s shareholders, subject to further financial, tax and legal analysis, resulting in shareholders holding shares of two independent and publicly-traded companies :

The Motorola Mobile Devices company, which will take the mobile handsets and accessories business, and the Broadband and Mobility Solutions business, which will deal with network infrastructure, set top boxes, wireless access systems, VOIP and cellular networks.

Brown had little to say with regard to the rumours that Motorola may want to walk from the mobile device industry completely. Although he did say that the company’s priorities surrounding improving it’s mobile division hadn’t changed.

“Our priorities have not changed with today’s announcement. 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. As part of that effort, we have undertaken a global search for a new chief executive officer for the Mobile Devices business. We believe strongly in our brand, our people and our intellectual property, and expect that the Mobile Devices business will be well-positioned to regain market leadership as a focused, independent company.”