Moto will now be two public companies instead of one. The handset division and the Broadband & Mobility Solutions operations will be separate companies. We’re not sure if there will be re-branding of the two separate entities. Motorola tried selling but there have been takers.
Splitting the company might make the handset division more palatable for investors. “I suspect it’s a prelude for a joint venture for the mobile devices business,” said Tero Kuittinen, an Avian Securities analyst . “It’s positive news because it shows the company is moving toward a serious restructuring.” Some analyst think it paves the way to full recovery for Motorola while others think it can lead the company into a deeper hole. “In the short term restructuring is not helping Motorola on the operational level. Probably, the first quarter is weak for Motorola, which relatively could benefit others,” said Carnegie analyst Janne Rantanen.
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