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Carl Icahn’s dream has finally come true, Motorola is going to split into two separate companies. No date for the breakup has been given. Full press release after the jump.
[Via: PR News Wire]
Motorola, Inc.
(NYSE: MOT) today announced that the Company’s Board of Directors has
commenced a process to create two independent, publicly-traded companies.
Today’s decision follows the Company’s January 31, 2008 announced
evaluation of the structural and strategic realignment of its businesses
and represents affirmative steps to position its Mobile Devices and
Broadband & Mobility Solutions businesses for success, while creating value
for all Motorola shareholders.
“Our decision to separate our Mobile Devices and Broadband & Mobility
Solutions businesses follows a review process undertaken by our management
team and Board of Directors, together with independent advisors,” said Greg
Brown, Motorola’s president and chief executive officer. “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.”
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.
“Our priorities have not changed with today’s announcement,” added
Brown. “We remain committed to improving the performance of our Mobile
Devices business by delivering compelling products that meet the needs of
customers and consumers around the world. As part of that effort, we have
undertaken a global search for a new chief executive officer for the Mobile
Devices business. We believe strongly in our brand, our people and our
intellectual property, and expect that the Mobile Devices business will be
well-positioned to regain market leadership as a focused, independent
company.”
The completion of any separation transaction would be subject to
certain customary conditions, including implementation of inter-company
agreements, filing of required documents with the Securities and Exchange
Commission and receipt of an opinion of counsel or a ruling from the
Internal Revenue Service as to the tax-free nature of any transaction. The
Company expects that the separation of its businesses, if consummated,
would take place in 2009. The Company noted that there can be no assurance
that any separation transaction will ultimately occur or, if one does
occur, its terms or timing.
About The Author
Stefan Constantinescu
Stefan Constantinescu (@WhatTheBit on Twitter) has loved technology since as far back as he can remember. It started with computers, but in the past few years his passion has turned to mobile devices. As a mobile phone enthusiast who lives and breathes devices that connect to the internet, he knows he is not alone with this radical fascination of all things wireless. He is strongly opinionated and enjoys a good debate so leave comments in his posts and he’ll get back to you! Stefan began blogging as a hobby in the fall of 2006 and joined IntoMobile in the summer of 2007. Later he got a job at Nokia in March 2008, but as of June 2009 he has rejoined the IntoMobile team. He is currently based out of Helsinki, Finland.
