Motorola Splits into Separate Home Devices and Enterprise Mobility Firms

Posted 02/15/2010 at 6:24am | by Paul Lilly

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Motorola is about to become two-faced, but not in a bad way. Targeting the first quarter of 2011, Motorola says it will split into two independent, publicly traded companies. One will continue to focus on mobile gadgets and home devices, while the other will take aim at the enterprise mobile market and network business.

"The combination of Mobile Devices and our Home business brings together two highly complementary and innovative organizations," said Dr. Sanjay Jha, co-chief executive officer of Motorola. "Together we will be best positioned to lead in the convergence of mobility, media, and the Internet. Our expanding portfolio of smartphones and end-to-end video content delivery capabilities will enable us to provide advanced mobile media solutions and multi-screen experiences for our customers."

The move has the full support of Motorola's board of directors, who sees this as beneficial to long-term shareholder value. Both ventures will use the Motorola brand, with the Mobile Devices and Home business unit owning the rights and licensing the brand royalty free to the Enterprise Mobility Solutions and Networks business.