Motorola Inc said it would split into two publicly traded entities to separate its loss-making handset division from its other businesses. This divison actually endup sending its shares up about 5 percent.
Motorola has been losing handset market share and is now ranked third in the world.They said separating the cell phone business,could help Motorola find a strategic investor, such as among Asian handset makers that are keen to win a bigger share of the U.S. market.This will help motorola to hold up their market against their rivals like Nokia and Samsung Electronics .
The two entities it plans to split into are Mobile Devices, and Broadband & Mobility Solutions. The latter consists of its network equipment, enterprise and public safety businesses.
t said the creation of two companies would improve flexibility, increase management focus and provide more targeted investment opportunities for shareholders.
Motorola Chief Executive Greg Brown said in a statement that the company has started a global search for a new CEO for the mobile devices business.
via: Economic Times