Motorola Inc said it would split into two publicly traded entities to separate its loss-making handset division from its other businesses. The move is expected to be completed in 2009, the company said.
Motorola has been losing handset market share and is now ranked third in the world. The two entities it plans to split into are Mobile Devices, and Broadband & Mobility Solutions. The latter consists of its network equipment, enterprise and public safety businesses.
It said the creation of two companies would improve flexibility, increase management focus and provide more targeted investment opportunities for shareholders.
Motorola Chief Executive Greg Brown said in a statement that the company has started a global search for a new CEO for the mobile devices business. The move comes after Motorola said in late January that it was conducting a strategic review of its business that could lead to a separation of the handset business.
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