Well it’s happened, Motorola has been split down the middle. The board of directors have decided to split Motorola into two independent, publicly-traded companies, one called Mobile Devices and the other, Broadband & Mobility Solutions.
The mobile side of Motorola’s business, which has been hemorrhaging capital over the last year, has been a bit of an anchor around the neck of the company’s more profitable divisions, prompting the chop. As you might expect The Mobile Devices company will focus on the design, manufacture, and sale of mobile handsets and accessories while The Broadband & Mobility Solutions business will cover, government, public safety, home and network business.
From a consumer point of view, this may not mean much in the short term, especially with Motorola’s impressive 2008 handset line-up. Still, the changes will filter down at some point and if The Mobile Devices side of the business continues to under perform, Motorola’s future as a handset manufacturer could be bleak. You never know however, this could revitalize Motorola internally prompting a financial comeback. Let’s hope Moto doesn’t go the way Palm is currently headed.
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