Motorola X 2

Motorola Sets Plan to Split Into Two


Motorola Inc. said it would split into two publicly traded companies by the first quarter of next year, the company's latest attempt to reinvigorate its disparate businesses.

The Schaumburg, Ill., company has long sought a break-up but recently shifted its strategic plans. The change was reported by The Wall Street Journal on Wednesday.

Motorola Thursday said it will group together its core handset unit with the unit that makes television set-top boxes, placing them under co-Chief Executive Sanjay Jha.

Fellow co-CEO Greg Brown would oversee a separate company selling two-way radios, bar code scanners and gear for telecommunications carriers.

"We have been at times a drain on resources on other businesses, and we've reduced shareholder value," Mr. Jha said on a conference call, adding the split would add value to both companies.

Under the plan, the two companies would each account for roughly half of Motorola's current sales, which were $22 billion last year.

They will share the Motorola brand. Mr. Jha's company will own the brand, and license it out for use to Mr. Brown's business.

Comment: Interesting. My next stock quest is GIS. These companies look like good investments to me: Ford, Motorola, 3M, and P&G. How about First Energy - paying over 5% in dividends.


  1. It will be interesting to see where MOT goes from here.

  2. They jumped up on this news and look to be poised to do so even more.


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