Inc. 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
"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.
Cheers ~ Arne