With less than a week until several expected handeset announcements may take place at CTIA in Las Vegas, Motorola has just today disclosed that it will be splitting into two public companies. In the wake of a plummeting stock price and pressure from Carl C. Icahn, Motorola will soon separate its mobile phone division from the rest of its dealings. Motorola’s cellphone business was bustling not very long ago but it has since become an anchor that simply won’t seem to budge. Motorola’s CEO Gregory Brown’s attempt to put a positive spin on the announcement:

“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.”

Motorola stock took a 45% dive in 2007 and has shown no signs of improvement to date in 2008. As Motorola’s cellphone business continues to lose market share and Icahn, 6.3% owner of the company, has not been subtle in his distaste for the situation. If Motorola decides to grant him the four seats that he is currently seeking on the board, would love to be a fly on the wall of one of those pow wows…


Zach Epstein has worked in and around ICT for more than 15 years, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications in the US and around the world. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.