Business

Motorola splitting in two...
by Milota Sidorova

Motorola Inc. is breaking into two companies with split program and product lines. Although Motorola is the seventh biggest cellphone seller last three years were not that business success, in fact the company went into the zone of green lights only the last quarter between July and October 2010. But in 2007, the situation was completely different – Motorola was the second largest phone seller, but couldn't hold the pace with upcoming rivals like Apple or Research in Motion – companies that relied on trendy smartphones. iPhones and BlackBerries are the biggest income source for these companies. The break-up is nothing surprising, the plans dated back to 2008 an! d the company was meant to complete the separation by 2009. The financial conditions were not favorable so it remained solid. But after Dec. 21 shareholders will receive shares in both new-born companies – Motorola Mobility that should be focused in the consumer business and Motorola Solutions that will specialize on professional business. The reason for break-up is explained as „presenting two simple stories“ to investors rather than one complicated one. Shareholders will receive one share in Motorola Mobility for eight shares in Motorola Solutions. But the parental company will rename into Motorola Solutions. Motorola however, won't split its core part, because the division that makes network equipment for cell phone companies is going to be sold to Nokia Siemens Networks, a Finnish-German joint venture. Details of the contract and the contract itself should be known before the end of the year. The history of Motorola set back into 1930s when it started ! as a car radio manufacturer.

related story (sgx1! 8694): http://news.yahoo.com/s/ap/20101130/ap_on_hi_te/us_motorola_...

by Milota Sidorova for Cantell TV (http://cantell.tv)

Cantell TV is the fastest growing provider of digital broadcasting coupled with telecommunications, allowing people to easily control, view, upload and share digital content through proprietary interface coupled with free phone calls. Cantell TV is committed to delivering infinite choices to your world of entertainment at the tip of your fingers.

posted by Blog TechSource @ 2:06 PM