Motorola Expected to Split Into Two Companies in Q1 2011

From DailyTech: Motorola has unveiled plans to split the company into two independent companies, with the mobile phone business expected to join the Motorola cable set-top box business unit.

Splitting into two halves has been in discussion for more than two years, but the company waited while the mobile phone business suffered even worse sales numbers compared to competitors.

The company's business unit struggled greatly, but the release of the Motorola Droid Android-powered smartphone has greatly helped the company. A bit more additional financial security led to the ability to finally split the company.

"We have been at times a drain on resources on other businesses, and we've reduced shareholder value," said Motorola co-CEO Sanjay Jha, on on a conference call.

Both Jha and co-CEO Greg Brown expect the split to help add value to the newly independent companies. Jha will oversee mobile phones and set-top boxes, while Brown will be responsible for telecommunications equipment and two-way radios.

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