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Motorola to split into two publicly-traded companies

Tuesday, February 16, 2010
By Gina Roos

motorolalogoSchaumburg, Ill. — Motorola, Inc. announced last week that it intends to separate into two independent, publicly-traded companies some time in the first quarter of 2011. The company will split into the Mobile Devices and Home businesses, and the Enterprise Mobility Solutions and Networks businesses, enabling both companies to better target growth opportunities in their respective markets.

According to IMS Research, Motorola’s proposed Enterprise Mobility Solutions And Networks Group (EMSN) “is a hidden gem with a strong future ahead.”

IMS Research says Motorola’s Enterprise Mobility group has remained successful despite criticism over the past two years aimed in particular at the mobile devices division.

“Last year, sales for the Enterprise Mobility Solutions group (EMS) represented $7.0 billion; a key element of this was its mobile radio business. You would be forgiven if you were unfamiliar with this industry; however, it generates tens of billions of dollars a year, with Motorola being the 800lb gorilla in the room,” said Jatinder Thandi, research analyst for IMS Research in a statement. “The mobile radio market largely revolves around blue light communications but also covers a vast array of two-way radio users worldwide.”

Thandi thinks Motorola is well-positioned in the mobile radio industry with its large portfolio of digital technologies aimed at all end users and IPR that will enable the company to dominate this industry.

Motorola’s Mobile Devices and Home businesses will focus on mobile converged devices, digital entertainment devices in the home, and end-to-end video, voice and data solutions. The business will work with network operator partners to deliver more advanced personalized services that leverage the capability of wireless and wireline broadband availability. Dr. Sanjay Jha, co-chief executive officer of Motorola will serve as chief executive officer effective immediately.

Motorola’s Enterprise Mobility Solutions and Networks businesses will deliver end-to-end portfolio of products and solutions, including rugged two-way radios, mobile computers, secure public safety systems, scanning, RFID, and wireless network infrastructure. Greg Brown, co-chief executive officer of Motorola, Inc., will serve as chief executive officer of this business effectively immediately.

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One Response to “Motorola to split into two publicly-traded companies”

  1. The way I understand it, the company Motorola will be split into 2 different companies, but both companies will still be seen by the general public as “Motorola”. Though I guess they will be separate entities in the stock market

    #96961

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