Split for Motorola STB division

Motorola is to separate into two publically traded companies from the first quarter of 2011. The decision folds Motorola’s struggling mobile division in with its set-top box unit while creating a separate company for its enterprise mobility unit and its wireless networking business. The separation will take place through a tax free stock dividend.

Dr Sanjay Jha, the co-chief executive officer of Motorola Inc becomes chief executive officer of Motorola’s Mobile Devices and Home businesses  with immediate effect. The business will include mobile converged devices, digital entertainment devices in the home, and end-to-end video, voice and data solutions. “The combination of Mobile Devices and our Home business brings together two highly complementary and innovative organizations. Together we will be best positioned to lead in the convergence of mobility, media, and the Internet.  Our expanding portfolio of smart phones and end-to-end video content delivery capabilities will enable us to provide advanced mobile media solutions and multi-screen experiences for our customers,” Dr Jha said in a statement.

Dr Jha’s co-chief executive officer Greg Brown becomes chief executive officer of Motorola’s Enterprise Mobility Solutions and Networks businesses effective immediately. The business includes rugged two-way radios, mobile computers, secure public safety systems, scanning, RFID, and wireless network infrastructure.

The decision ends several weeks of uncertainty that began in November, when the possibility of a sale for the Home and Networks Mobility division was first raised by the Wall Street Journal. Subsequently Motorola announced the sale of it European modem unit to the Taiwanese manufacturer Compal Electronics. However, Motorola has still been in acquisition mode, purchasing the Israeli IPTV specialist BitBand and integrating it into the Home & Networks division.