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Motorola Divides In Attempt to Conquer

Gordon Kelly


Motorola Divides In Attempt to Conquer

My how things can change in a year...

2006 - 2009 were largely spent discussing how and when Motorola's floundering phone division would finally do the decent thing and die, but the arrival of Android, a change of leadership and some inspired new designs mean now the shakeup has come it is rather more progressive.

During the first quarter of 2011 Motorola has announced it will separate into two independent, publicly-traded companies. The first will comprise its Mobile Devices and Home businesses (handsets, home entertainment, conferencing equipment, etc), the second Motorola's Enterprise Mobility Solutions and Networks businesses (two-way radios, mobile computers, secure public safety systems, scanning, RFID and wireless network infrastructure).

“The board of directors supports the planned separation of Motorola into two industry-leading public companies,” said David Dorman, chairman of Motorola’s Board of Directors. “We believe this structure provides significant operational and strategic flexibility for both companies, positions them for future success, and enhances long-term shareholder value.”

We've bashed Motorola a lot in recent years, primarily because it was deserved, but this is the latest in a number of smart moves it has made over the last 12 months. In fact, had I spelt out how to turn around the company in early 2009 it would have gone something like: 1. Scrap the RAZR, 2. Jump on Android like there's no tomorrow, 3. Split your bloated company into more focused groups.

Oh yeah, I did...


Official Press Release

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