Motorola targets first quarter of 2011 for split into two

[allaboutsymbian]

http://www.blogcdn.com/www.engadget.com/media/2010/02/moto-moons-rm-eng.jpgEnding a healthy spat of rumor and speculation (http://www.engadget.com/2010/02/10/motorola-to-roll-out-revised-plan-schism-not-so-clear-cut-anymo/), Motorola has confirmed today that it'll be splitting into two separate entities as of the first quarter of next year. The first of the two will form from the current Mobile Devices and Home businesses -- led by Sanjay Jha (http://www.engadget.com/tag/SanjayJha/) effective immediately -- with control of the phone business, set-top boxes, and "end-to-end video, voice and data solutions," while the other half will congeal out of the Enterprise Mobility and Networks divisions that are responsible for wireless infrastructure, two-way radios, public safety systems, and the like, and that will be led by Greg Brown (in other words, both businesses will retain their current leaders). The deal apparently has the support of Moto's board (a good thing to have when you're a publicly-traded company), and logically, both spin-offs will be publicly-traded as well.

Here's where it gets interesting: the Mobile Devices and Home business will own the Motorola brand and license it, royalty-free, to the other company. Presumably this would be a perpetual license, but we don't have details there yet. In the meantime, Old Moto (as we'll call it for now) expects to follow through on the plan using a "tax-free stock dividend of shares in the new company to Motorola shareholders" with the understanding that both businesses will be "well capitalized" so that they "can execute their respective business plans and be able to address future opportunities." Follow the break for Motorola's official press release detailing the schism.Continue reading Motorola targets first quarter of 2011 for split into two (http://www.engadget.com/2010/02/11/motorola-targets-first-quarter-of-2011-for-split-into-two/)
Motorola targets first quarter of 2011 for split into two (http://www.engadget.com/2010/02/11/motorola-targets-first-quarter-of-2011-for-split-into-two/) originally appeared on Engadget (http://www.engadget.com) on Thu, 11 Feb 2010 16:15:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).


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