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Motorola splits


Image

Handsets freed


Motorola
has split into two publicly
traded entities to separate its loss-making handset division from its other businesses.

The company said that separating the cell phone business, which
has been losing market share to rivals like Nokia and Samsung, could help Motorola find a strategic investor, such as among Asian handset makers that are keen to win a bigger share of the U.S. market.

It would be much easier for such suitors to come forward if they were dealing with  a standalone handset company, analysts claim. Motorola's share price has dropped down the toilet since October 2006, falling more than 60 percent as shareholders were angry that the company has not done more to  come up with a strong successor to the once-lauded Razr phone.
Last modified on 28 March 2008
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