Motorola Splits in Two
March 26th, 2008 | by Mark Evans |
Motorola plans to split into into two publicly-traded companies - one involving its home and networks business (set-top boxes, modems, enterprise equipment), and a second involving its wireless phone business.
The move comes amid pressure from investors, include billionaire Carl Icahn, for Motorola to restructure given its sluggish performance and the struggles of the wireless device business, which has gone from red-hot to not.
There’s already speculation about what Motorola’s strategic may mean for Nortel given all the talk about a merger/deal between Nortel and Motorola’s enterprise equipment business. Perhaps this is the first step towards this making this transaction emerge from idea to reality.
The question is whether one plus one equals three in this case. Then again, does Nortel and Motorola have a choice but to merge given many of its major rivals have already gone through the exercise.
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