Can Motorolas Handset Business Stand Alone?
Motorola said Wednesday that it will split its troubled handset business off into a separate entity next year, as the company seeks to placate frustrated investors. In 2009, Motorola will split itself into two businesses, one called Mobile Devices, and the other named Broadband & Mobility Solutions, the company said. The latter unit will include the company’s set-top and modems business as well as enterprise mobility products. The former will include the company’s consumer handset business, which really hasn’t had much success since the Razr phones were launched in 2003 and peaked during 2004 through 2006. In January, Motorola shocked the industry by considering a spinoff or sale of its handset business. Wednesday, Motorola chief executive Greg Brown said that the decision represented the best solution its management team and strategic advisors could come up with. “Each company would benefit from improved flexibility, a capital structure more tailored to its individual business needs,
