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Motorola officially splitting its organization into two businesses

Motorola officially splitting its organization into two businesses
Just when things were beginning to look a bit cheery over at Motorola after a stunning resurgence among consumers, they are planning on splitting up their company. That's not to say that the move is a bad thing – it may actually make them more efficient after officially announcing its plan to split the organization into two separate businesses. This isn't happening any time soon, but it's slated to occur by the end of the first quarter of 2011. One business will focus on Motorola's mobile devices and home businesses while the other will place their efforts on its enterprise mobility solutions and networks businesses. Motorola explained, “Motorola intends to effect the separation through a tax-free stock dividend of shares in the new company to Motorola shareholders. Following the separation both businesses will be well capitalized so the companies can execute their respective business plans and be able to address future opportunities. The proposed tax-free spin-off is expected to be accomplished through a pro rata distribution to Motorola shareholders.” The Motorola brand will indeed stay intact with both companies planning on retaining the name although the separation will be subject to regulatory terms and conditions.

source: Motorola via Phonescoop

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