Motorola to dump billions into its Mobility spinoff

Motorola means business when it comes to its upcoming breakup and it is throwing cash and moving debt around around like crazy. The split will form a new Motorola Mobility which will encompass the struggling mobile phone division along with the profitable home hardware division that manufactures set-top boxes and DSL/Cable modems. The remainder of Motorola, which is responsible for two-way public safety radios, handheld scanners, and telecommunications network gear, will be rolled into the new Motorola Solutions. The Mobility company will get a much needed shot in the arm with an infusion of cash that will total $3 to $4 billion and the removal of pension liabilities and other encumbering debt. The Solutions company will shoulder the burden of this split by assuming these pension and other liabilities and will receive any remaining cash reserves. With that much cash in hand and momentum with its DROID series of smartphones, Motorola Mobility has an opportunity to make some waves in the mobile marketplace. For competition sake, let’s hope they do.

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