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Motorola Coming Apart at the Seams, Splits in Two

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…

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Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.