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In case you haven't noticed, this whole mobile computing thing is really taking off. So much so that Motorola is cutting off its mobile arm to see if it can grow on its own. Beginning January 4th, this new standalone division will be known as Motorola Mobility.
"Today's announcement marks another important milestone toward the upcoming separation that is expected to benefit Motorola, its stockholders, as well as each company's respective customers and employees. We look forward to taking advantage of the opportunities before us as we begin the new year as two independent, publicly traded companies," said Sanjay Jha, Motorola co-CEO and CEO of Motorola Mobility.
Motorola has been planning this split for at least a few months. Back in June, The Wall Street Journal said Motorola would funnel some $3 billion to $4 billion into its struggling cell phone business "when it splits off into a separate company next year." Motorola didn't say if it plans to infuse the new venture with cash, but did detail the distribution of stock. Motorola stockholders will receive 1 share of Motorola Mobility common stock for every share of Motorola common stock they own.
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