Wednesday, 25 April 2012

Motorola To Split Into Two Companies Cell Giant To Divide To Mobile, Enterprise Companies For "More Focused Operations"

Yesterday, the company that invented mobile phones, Motorola, announced
that they were going to split the company into two, smaller ones in
order to divide the company into smaller, more focused operations .
Motorola is said to be doing well, as it made $22 billion last year in
revenue.
Motorola will be split into two companies, one will continue to make the
mobile phone handsets and set-top boxes. The other will be more
enterprise-orientated, as they'll produce wireless networking products
and enterprise-grade radio systems. Current CEO Sanjay Jha will run the
consumer company while executive Greg Brown will become new CEO of the
enterprise company.
The consumer company will retain all the Motorola name and trademarks
and will license them back to the enterprise company, which leads us to
believe that they'll both be called Motorola, or some variation of that.
At the press conference, the company revealed that both halves of
Motorola have been successful, and each evenly contributed half to the
company's $22 billion in revenue last year.
It's no secret that Motorola did poorly in the last five years as it's
once popular Razr cell phone line started to fizzle out in sales. The
company turned to Android with its Motorola Droid, which is one of the
more popular Android phones. Sanjay Jha credited Android for the
turnaround of Motorola's consumer cell phone business.
Jha told the New York Times that both companies have improved their
balance sheets and will be able to stand alone and estimates they will
both be profitable.
How does this affect your favorite upcoming Motorola tech gadget?
Hopefully it won't. It sounds like this split has been planned for a
while and both 'halves' are said to be financially healthy.
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