Motorola to split into two companies
In recent months, many companies announced mergers, take-overs and acquisitions to help solve their financial problems brought in by the recession. It is more of a rare news then when a company splits up to solve the same situation.
Motorola has officially announced that it will split up into two companies on the first quarter of 2011. The two companies will become two separate publicly traded companies.
The first entity will combine the mobile-phone and set-top box divisions. The head of handset division, co-Chief Executive Officer (CEO) Sanjay Jha, will become the CEO for the first company.
The second one will combine enterprise mobility and network units, and Co-CEO Greg Brown will become its head.
It was in October 2008 that the company initially announced plans that it will spin-off its mobile business even if there is a global recession ongoing. It has seen sales fall after the blockbuster RAZR handset due to rising competitors’ hand units like Apple’s iPhone.