We knew that Motorola would spin off its mobile division into an independent company in early 2011 but the company has finally given a date for the Motorola split: January 4, 2011.
According to the company, the Motorola split will entail:
The distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. stockholders of record as of the close of business on Dec. 21, 2010.
Motorola, Inc. stockholders of record will receive 1 share of Motorola Mobility common stock for every 8 shares of Motorola common stock they hold.
Immediately following the distribution of Motorola Mobility common stock to Motorola stockholders, Motorola will effect a 1-for-7 reverse stock split of Motorola common stock, which will become effective prior to the market open on Jan. 4, 2011.
“Today’s announcement marks another important milestone toward the upcoming separation that is expected to benefit Motorola, its stockholders, as well as each company’s respective customers and employees. We look forward to taking advantage of the opportunities before us as we begin the new year as two independent, publicly traded companies,” the company said in a prepared statement.
The Motorola split will come right before the big CES show, where we’re expecting some big things from the company’s mobile division. With Verizon’s CEO doing the keynote, we’re expecting him to have an Android tablet to show off and this should be the oft-rumored MotoPad.
The handset division will be given lots of tools to succeed, as it will get an immediate $3.5 billion cash infusion. The company has also been very successful with its Droid lineup but the rest of its devices haven’t been as popular.
Being independent may give Moto a bit more focus on the mobile device space but it also won’t have the luxury of other divisions to cushion losses. It’s going to be sink or swim time for Moto starting Jan. 4.
[Via Motorola]