Motorola handset division won’t be sold, will split into two instead

Still wondering what’s going to happen to Motorola after it sells of its handset division? Well, you may never have to think of that again. Engadget is reporting that a decision has been made by Motorola’s board of directors and that this has nothing to do with selling off one of their biggest assets. Apparently, the board of directors see it more appropriate to split the company up into two, separate, independent and publicly-traded companies, which they are going to call Mobile Devices (1) and Broadband & Mobility Solutions (2). Motorola’s President and CEO Greg Brown seems fairly convinced that this will work for the better. He was quoted as saying:

“Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus – as well as more targeted investment opportunities for our shareholders.”

As of now, the decision to split is still subject to regulatory approvals, and Motorola hopes to have its way by 2009, at least. I hope they made the right choice.

Via [Engadget]