MOTOROLA SPLITS IN TWO
Motorola said it plans to split its Mobile Devices Business and Broadband & Mobility Solutions Business into two separate publicly-traded companies. The separation came in the wake of shareholder outcry over the poor management and performance of its mobile phone business.
During a conference call CEO Greg Brown said he will immediately begin searching for a CEO to head up the Mobile Devices Business and that he hoped the separation would reinvigorate its Mobile Devices business, which has been struggling against the likes of Nokia, Samsung and BlackBerry for market share.
n the final quarter of last year, Motorola told investors that net profit dropped 84 percent and sales of mobile phones fell 38 percent, while Motorola's chief rivals continued growth.
"We also expect this action to enhance the pace of recovery in Mobile Devices, to pave the way for its return as a leader in its industry, to accelerate our efforts to attract a new leader and to create shareholder value," Brown said.