Motorola to Split

Motorola to Split

Even though the announcement was first made in 2008, it seems that the decision was made now: inQ1 2010 Motorola will split into two companies, therefore the two co-CEOs will drop the „co” from the title.

In the first trimester foe 2008, Motorola announced that a new division will be created inside the company, managed by Sanjay Jha (especially brought inside the company for this step) which will be engaged only in the mobile devices market.

Therefore Motorola is totally changing: Jha will become  CEO of the company offering solutions for small businesses and mobile devices and the second company, lead by Greg Brown, the other current co-CEO, will lead a company offering enterprise mobility solutions for large and very large entities.

Brown’s company will offer complex security systems, scanning and RFID, wireless network infrastructure, mobile computers while Jha’s company will focus on entertainment, smart-phones and end-to-end video, voice and data solutions.

After Carl Icahn produced a scandal by suing the company’s directors to determine „their level of professionalism”, Motorola’s mobile division went through a regression leading to the company’s collapse on stock market: from 9,94$/a share at the end of 208 to  3,10$/a share in march 2009.

Both newly created companies will use the Motorola Brand, and the split will be made by offering tax-free stock dividend of shares to stakeholders.

At the moment the company is on a ascending trend with a value of over 7$/a share and the split decision is seen a a successful strategy by the annalists.