News
Moto motors on as two
Stuart O'Brien Mar 27 2008, 10:09am
Handsets and infrastructure units split into separate publicly-traded companies.
New Motorola CEO Greg brown has wasted no time trying to solve the malaise at Motorola, which confirmed yesterday its devices and telecoms infrastructure businesses are to be split.
It's arguably a sad way for the 80 year-old American company to begin the 21st century, but it has ultimately paid the price for resting on its Razr laurels as innovation stood still and market share fell.
The split is expected to take place next year following approval from shareholders, who have seen the value of their stock slump 44 per cent in the last 12 months.
Analysts widely welcomed the move.
Brown said: "Our priorities have not changed with today’s announcement. We remain committed to improving the performance of our mobile devices business."
In terms of content services, Moto hasn't been as proactive as rivals like Nokia and Sony Ericsson, but it has experienced sucess with its mobile music offering in China and the MOTODEV Game Developer Challenge.
