March 26, 2008

CG News: Motorola splits

John Biggs

21 comments »

In a clear move to keep Motorola’s flagging mobile phone sales from pulling down its lucrative broadband and switching enterprise services the company is splitting into two publicly-traded organizations. The Mobile Devices company will focus on mobile handsets while the Broadband and Mobility solutions sector will work on secure voice and data communication along with broadband for enterprises and government.

Motorola shareholders will receive shares in each of the companies once the process is completed.

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  1. Michael Bakovic

    Lol, I hate motorolla. Nice.

    -Check out my site for ways to make money online. http://mikesmoneyclub.blogspot.com/

  2. Kevin Allman

    no doubt this is a move as a result of pressure from mr. icahn

  3. amor

    Really I can understand how this company are losing market so fast

    http://finance.google.com/finance?q=NYSE%3AMOT

  4. micfo.com

    As far as to make more secure voice and data communication, I think this is good step.

  5. Shibopi

    if you make phones in a nice case but the worse interface ever seen in the world, its going to catch up with you at some point when people work out they need to use the phone as well as look at it

  6. jenkins

    I thought techcrunch was supposed to write about start-ups? Since when is Motorola worth writing about on your site? Are you guys getting desparate for new traffic?

  7. Matt

    Yep, should invented the iPhone…. to bad…

  8. Lagunatic

    Motorola’s broadband/data communication division was being pulled down by their phone division. It’s likely that the newly split phone company will be acquired by a competitor. The split will let the new broadband company grow - which should be good for shareholders.

  9. Marsello

    It really boils down to Icahn “the corporate raider” decision to split up the company so he can bring more value out of each, so it’s more of an investment decision.

  10. Peter

    #3 amor, the Razr has kept the writing off the wall for Moto Mobiles for years now, but as a company it has stood still in terms of design and as Shibopi says, interface. It’s a sinking ship (everywhere except the US) and it makes perfect sense to separate its Broadband and Mobility business, which is actually quite successful.

    Lagunatic, it will be interesting if an aquisition comes about for the Mobiles side … personally I can’t see if happening because what would they be buying? Besides the US brand.

  11. Waldo

    Who will the Motorola handphone group merge with in the next couple of months? Will they be joining the Sony-Ericsson party or with a Chinese manufacturer?

  12. Trivia Mania

    Not surprising and always a good move to keep hardware separate from software/services division.

  13. heri

    FAIL for motorola

    I have a KRZR, sleek -looking phone but the interface sucks big time

  14. joyanta

    May be Motorola Mobile can team up with Google Android to and deliver mobile 2.0 exp. This may allow them to distinguish themselves from the rest.

  15. Scott

    Motorola rode the success of the RAZR too long and never got serious about U/I issues or other matters. It also had a captive market in terms of Nextel that is now shrinking rather than growing. Seriously, there’s plenty of opportunity for innovation of handsets (e.g. iPhone, modumobile, etc).

    Moto seems like another example of a big company getting complacent.

  16. Pay Per Click Journal

    Hmm interesting to see - Motorola has certainly lost it’s power the past few years.

  17. Sharon

    And then because if this, Engadget posts the big scoop they have been sitting on as they researched it - the firy, scathing tell-all by ex-Motorola man, Numair Faraz. Big BURN reponse.

    http://www.engadget.com/2008/0.....logy-icon/

  18. Phil McCraken

    “Hmm interesting to see - Motorola has certainly lost it’s power the past few years.”

    In this market only. It still rules the 2way radio and large scale wireless radio systems. If you think its small potatoes, just about every city/county in the US uses Motorola Trunking / Astro / P.25 radios systems for police, fire, county services, etc.

    Broadband & Mobility Solutions has been paying Mobile Devices rent for years…

  19. Misery

    The lamest lamest software I’ve seen since I played with Samsung and LG phones. Nokia, Nokia, Nokia, Nokia or, if you’ve got the money, iPhone, iPhone, iPhone.

    Can’t help but think that they’ve sold as much as they have because the phone shops don’t let you play with real phones (only with dummy versions) before you buy.