Motorola, A telecommunications equipment giant will split into two companies on 4 January 2011. The new companies will be named, Motorola Solutions Inc. andMotorola Mobility Holdings Inc. Motorola is splitting its consumer-oriented side, focused on mobile phones and consumer devices, from the side that provides next-generation communications solutions to government, public safety and enterprise customers. Following the breakup, the company’s current co-CEOs, Greg Brown and Sanjay Jha, will head up Motorola Solutions and Motorola Mobility, respectively.
The breakup is presented to have two simple stories to investors, rather than one complicated one. Though Motorola set the breakup plan in motion in 2008 after prodding from activist investor Carl Icahn. The goal was to complete the separation by 2009, but the economic downturn and the continuing collapse of Motorola’s phone sales prompted it to postpone the plan, The Associated Press mentioned in a report.
“This announcement marks another important milestone toward the upcoming separation that is expected to benefit Motorola, its stockholders, as well as each company’s respective customers and employees,” said Motorola co-chief executives Greg Brown and Sanjay Jha in a joint statement.
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