After failing to spin off its mobile device business, Motorola today announced that it will split into two companies in the first quarter of 2011. The first will focus on its Mobile Devices and Home businesses while the other will focus on its Enterprise Mobility Solutions and Networks businesses. According to David Dorman, chairman of Motorola’s Board of Directors:
“We believe this structure provides significant operational and strategic flexibility for both companies, positions them for future success, and enhances long-term shareholder value.”
Motorola’s two co-chief executive officers will each head up one of the two new divisions. Dr. Sanjay Jha will become chief executive officer of Motorola’s Mobile Devices and Home businesses. Greg Brown will serve as chief executive officer of Motorola’s Enterprise Mobility Solutions and Networks businesses.
Both new companies will continue to use the Motorola brand. The Mobile Devices and Home business is expected to own the Motorola brand and license it royalty free to the Enterprise Mobility Solutions and Networks business.