Motorola announced last night it was looking at the possibility of separating its mobile device division, which is dragging down the rest of the business. The company said it was looking at strategic and structural realignment of its business, with the option of separating the handset division.
A number of analysts reacted to Motorola’s Q407 results last week saying that the company’s best option would be to sell its mobile devices business.
‘We are exploring ways in which our mobile devices business can accelerate its recovery and retain and attract talent,’ Motorola’s CEO and president, Greg Brown said.
Nomura analyst, Richard Windsor said the options open to the company include a straight sale or a spin off into a separate company. He expects Chinese companies to be the most likely buyers. However, he does warn that ‘this type of upheaval is the last thing that the handset business needs at this point in time.’
Selling the handset business would greatly benefit Motorola’s home and networks, and the enterprise mobility networks businesses, which are now devalued because of the handset business.