Motorola will split up in Q1 2011

The new businesses will focus on handsets and home products, and enterprise mobility

Motorola will be split into two publicly traded companies in the first quarter of next year, with one focusing on handsets and home entertainment devices and the other on making enterprise communications gear, the company said Thursday.

The company's two co-CEOs, Sanjay Jha and Greg Brown, will lead the two new entities. Jha was named CEO of Motorola's Mobile Devices and Home businesses, effective immediately. Brown was immediately named CEO of the Enterprise Mobility Solutions and Networks businesses.

The company plans to carry out the separation through a tax-free stock dividend of shares to current shareholders. The Mobile Devices and Home entity will own the Motorola brand and license it royalty free to the enterprise business, Motorola said.

The board of Motorola supports the breakup plan, according to Motorola's news release.

(More to follow.)

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Stephen Lawson

IDG News Service
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