Motorola will split into two companies in the first quarter of 2011, separating its mobile phone and home devices business from the rest of the company.
One company will focus on mobile devices and home devices while the other will include its corporate business and wireless network equipment business, the company said yesterday (11 February).
Both businesses will use the Motorola brand name. However, it is expected that the mobile devices and home business will own the Motorola brand and license it royalty-free to the enterprise mobility solutions and networks business. The company is expected to face close questioning about the move next week as it exhibits at Mobile World Congress in Barcelona.
Sanjay Jha, co-chief executive officer of Motorola, will take on the role of CEO of the mobile devices and home businesses, effective immediately. This company will offer a portfolio of mobile converged devices, digital entertainment devices in the home, and end-to-end video, voice and data products.
The company will also enable more advanced personalised services that use the capability of wireless and fixed-line broadband availability, Working with operator partners.
The company had said last month that it planned to separate its handset business, which has been struggling to win back share. However, executives had also said they were looking at alternative structures.