Motorola is planning to split in early 2011. The company plan with one half containing its consumer-focused mobile phone and television set-top box products, and the other holding divisions that target business customers.
The company will now have two co-CEOs, Sanjay Jha and Greg Brown, running the separate companies. Sanjay Jha will focus on Motorola’s entertainment and consumer-oriented devices, including smart phones like the Droid, and Brown on high-tech business solutions.
Greg Brown, the company’s other co-CEO, will head the enterprise mobility and networks businesses. The enterprise mobility division makes products like handheld devices for warehouse workers and bar-code scanners.
The networks business comprises building out cell phone towers and setting up fiber-optic cable lines to enable the spread of high-speed Internet connections.
The split will offer existing shareholders a share in each new company, which will be roughly the same size in terms of annual revenue at US$11 billion. Both halves will be publicly traded.
According to Greg Brown, the company believes this configuration is cleaner and more compelling for customers and investors. The company do anticipates that both business segments will have positive operating cash flow moving forward.
Two newer phones based on Google Inc.’s Android operating system, the Cliq and the Droid, have received a positive response , and according to Motorola, it shipped 2 million units in the fourth quarter. Motorola’s Android-based Devour will go on sale in March through Verizon Wireless. The company plans to launch 20 smart phones this year alone.
According to Jha, smart phones will be increasingly wedded to television set-top boxes as video is watched on multiple devices. Motorola’s mobile-device business will be profitable in the fourth quarter of this year. Together, mobile devices and the home business are uniquely positioned to be a leader in the largest opportunity in technology today, the convergence of mobility, media, and the Internet.
Both the company will continue to use the Motorola brand name, with the mobile device side holding it and licensing it royalty-free to the other.
