Motorola spins-off mobile phone maker
- Posted by IndustryNews in B2B, Trade knowledge, Success stories, Enterprises, Expert Blogs
- 2008, March 27th
Tag : electrical industry, electronic, electronic manufacturer, mobile phone, motorola, telecommunications
Motorola is to spin-off its struggling mobile phone business as it starts the process of separating its Mobile Devices and Broadband & Mobility businesses into two independent, publicly-traded companies.
The move has been expected following Motorola's announcement in January that it was reviewing its mobile business structure and after coming under pressure from key shareholder, Carl Icahn. It marks the biggest change at Motorola since it spun off its semiconductor manufacturer into Freescale in 2004.
Greg Brown, Motorola’s president and CEO insisted that “priorities have not changed with today’s announcement. We remain committed to improving the performance of our Mobile Devices business."
Motorola, which was the long time leader in the electronic mobile phone industry, is now ranked as the world's third largest mobile phone maker behind Nokia and Samsung in terms of market share and shipments.
Brown also said he has started the search for a new chief executive officer for the Mobile Devices business.
Motorola expects that the separation of its businesses will take place in 2009.
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