Motorola says separation on track
Motorola said Thursday it was on track to split into two separate companies next year, one focusing on handsets and the other on professional safety equipment.
Motorola, the biggest US cellphone maker, in a filing with the US Securities and Exchange Commission, said the separation into two publicly traded companies would take place as planned in the first quarter of 2011.
The mobile and home entertainment devices division will operate as Motorola Mobility, the Schaumburg, Illinois-based company said.
The other company, Motorola Solutions, will consist of its enterprise mobility solutions and networks businesses, which include two-way radios, mobile computers, secure public safety systems, scanners and wireless network infrastructure.
"Mobile Devices has made significant progress in 2010, and we are confident that the separation is the right strategy for Motorola, our stockholders, our customers, our partners and our employees," said Motorola co-chief executive Sanjay Jha.
Jha will serve as CEO of Motorola Mobility while Greg Brown, Motorola's other co-chief executive, will head Motorola Solutions.
Jha was hired by Motorola in 2008 to turn around and spin off its cellphone division from the rest of the company but the move was repeatedly delayed.
Motorola enjoyed success with its popular Razr phone launched in 2005 but has been losing ground since then to Apple and Research in Motion, maker of the Blackberry, as well as to other major cellphone manufacturers such as Nokia, Samsung and Sony Ericsson.
Motorola has been betting on Google's open-source Android mobile phone operating system to try to revive the company and has released a series of Android-powered "Droid" smartphones.
(c) 2010 AFP