Moto Considers the Splits
Motorola Inc. (NYSE: MOT) says it could spin off its device business or pursue other "structural and strategic realignment" of its businesses to "better equip its mobile devices business to recapture global market leadership and to enhance shareholder value."
"We are exploring ways in which our mobile devices business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value of this great franchise," CEO Greg Brown says in a statement issued late today.
The company says a spinoff is one option, but not the only option and it "does not intend to discuss developments with respect to the exploration of strategic alternatives unless or until its Board of Directors has approved a definitive transaction or the process is otherwise complete."
Motorola's device business has been suffering throughout 2007 and losing market to competitors, as the firm has struggled to recreate the success it had with its best-selling RAZR phone.
— Dan Jones, Site Editor, Unstrung