Report: Motorola crafting new breakup plan

The company would spin off its set-top box and handset businesses together, the Wall Street Journal said

Motorola may sell its wireless-network-equipment business and spin off its set-top box operations along with its handset division, reversing earlier reorganization plans, according to a report in the Wall Street Journal.

The ailing company has been trying to craft a breakup plan for several years. Over the past few months it had been leaning toward selling its Home and Networks Mobility division, which makes both TV set-top boxes and wireless infrastructure, but now the company's leaders want to auction off the wireless equipment business, the Journal reported Wednesday. They believe the set-top box business fits in with the handset division, which is Motorola's biggest business, the article said, citing unnamed sources.

After the spin-off of the handset and set-top box business into a new publicly traded company, Motorola itself would be shrunk to a company with only about one-third of its current revenue, the article said.

Motorola's mobile-phone business has stumbled since its last major hit, the Razr, in the middle of the past decade. It is now pinning its hopes on the Android operating system, with high-profile handsets such as the Droid smartphone. Other parts of the company have been more successful in recent years.

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Stephen Lawson

IDG News Service
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