On the basis of international reports in the first quarter of 2011, Motorola will split into two companies: the mobile phones and set-top box units into a listed company and enterprise mobility and networking units into another listed company.
Motorola said in a statement, the former head of mobile phone unit, Sanjay Jha appointed as CEO of mobile phones and set-top boxes, the appointment is effective immediately. Co-CEO Greg Brown will be responsible for other businesses.
Motorola postponed in October 2008 to develop mobile phone division spin-off plans because of the economic downturn,. Motorola bets about the consumers of the business integration of two departments to win back market share in mobile phones.
Motorola Chairman David Dorman said in a statement: “This architecture offers two significant operational and strategic flexibility, in order to prepare for future success, and strengthen long-term interests of shareholders . ”
Motorola’s stock price during regular trading on the New York Stock Exchange rose 2 cents to 6.65 U.S. dollars; in after-hours trading rose 5.3% to 7 U.S. dollars. Its shares rose 75 percent in 2009, this year has fallen 14%.
Motorola held a meeting at 5 pm to discuss the spin-off issues, will distribute the new company to existing shareholders to complete tax-free spin-off dividend. Motorola said that, in accordance with the strategy developed, the two companies are able to improve the capital.
Mobile phones and home business will have a Motorola brand, and free of charge to the enterprise mobile and Internet business license of copyright. Market research firm MKM Partners LP analyst Tero Kuittinen that not all investors are optimistic about the transaction. Kuuttinen said: “The purchase of Motorola’s bet on the stock portion of the shareholders of the company to sell mobile phone unit, or set-top box sector, I think many people do not want to combine the two.”