Motorola is to split itself into two companies, one serving the mobile maket and the other enterprise, but both using the Motorola brand. Hmm, that sounds odd.
Unable to sell the mobile division, despite the dramatic turnaround by Sanjay Jha, this will become the Mobile Devices and Home businesses, headed by Jha. The other will include the Enterprise Mobility Solutions and Networks businesses, and headed by Greg Brown. Both Jha and Brown are co-chief execitives of Motorola today, so there's no real management change.
The mobile business will offer a comprehensive portfolio of mobile converged devices, digital entertainment devices in the home (ie set top box), and end-to-end video, voice and data solutions. Working with network operator partners, the company will also enable more advanced personalized services that use the capability of expanding wireless and wireline broadband availability, ie software.
"The combination of Mobile Devices and our Home business brings together two highly complementary and innovative organizations," said Jha. "Together we will be best positioned to lead in the convergence of mobility, media, and the Internet. Our expanding portfolio of smartphones and end-to-end video content delivery capabilities will enable us to provide advanced mobile media solutions and multi-screen experiences for our customers."
The Enterprise Mobility Solutions and Networks business will offer a comprehensive end-to-end portfolio of products and solutions, including rugged two-way radios, mobile computers, secure public safety systems, scanning, RFID, and wireless network infrastructure. This will also be an investment-grade business and carry Motorola's current debt, leaving the mobile business debt free - nice but necessary for its continued survival.
"We are the leading mission- and business-critical technology solutions provider with a commitment to innovation," said Brown. "As an independent company, we will continue to build on our long-standing tradition of strong customer relationships, leading-edge product development, quality, thought leadership, and solid financial performance."
"The board of directors supports the planned separation of Motorola into two industry-leading public companies," said David Dorman, chairman of Motorola's Board of Directors. "We believe this structure provides significant operational and strategic flexibility for both companies, positions them for future success, and enhances long-term shareholder value."
The interesting thing is the branding, which will be owned by the mobile business and licensed to the enterprise business, which implies thatthe likely one to change its branding is the enterprise business.
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