Motorola To Split Into Two Companies, Mobile Devices and Broadband
Motorola has announced on Wednesday, that the Company’s Board of Directors has commenced a process to create two independent, publicly-traded companies. The moves comes as the Schaumburg, Illinois, company has come under pressure from billionaire investor Carl Icahn to take steps to boost shareholder value.
The separation is expected to take the form of a tax-free distribution to Motorola’s shareholders, who would then own shares of two independent groups, Motorola said.
Based on current plans, the creation of the two stand-alone businesses is expected to take the form of a tax-free distribution to Motorola’s shareholders, subject to further financial, tax and legal analysis, resulting in shareholders holding shares of two independent and publicly-traded companies:
- The Mobile Devices business is an industry leader in multi-mode, multi-band communications products and technologies. The business designs, manufactures and sells mobile handsets and accessories globally with integrated software solutions that incorporate the latest personal communications technologies. It also licenses a portfolio of intellectual property.
- The Broadband & Mobility Solutions business includes Motorola’s Enterprise Mobility, Government and Public Safety, and Home and Networks businesses. These businesses manufacture, design, integrate, and service voice and data communication solutions and wireless broadband networks for enterprises and government and public safety customers worldwide. These businesses also provide end-to-end digital and Internet Protocol (IP) video solutions, cellular and high speed broadband network infrastructure, cable set-top receivers, and associated customer premise equipment for residential and commercial wireless network system access.
Tags:Broadband, Company, Mobile, Motorola
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