Motorola has announced that the company’s board of directors has commenced a process to create two independent, publicly-traded companies. The company would be split into a mobile devices and a broadband & mobility solutions business.
Greg Brown, Motorola’s president and CEO, said in a prepared statement. “Creating two industry-leading companies will provide improved flexibility, more tailored capital structures, and increased management focus – as well as more targeted investment opportunities for our shareholders.”
Based on current plans, the creation of the two stand-alone businesses is expected to take the form of a distribution to Motorola’s shareholders, resulting in shareholders holding shares of two independent and publicly-traded companies.
The move follows pressure from the shareholder Carl Icahn, who sent the following public letter to the board:
“Today’s much delayed and long overdue announcement regarding the spin-off of the mobile devices business and the establishment of two fully independent companies with separate management teams and boards is clearly a step in the right direction. As you know, for some time I have argued that this should be done. However, as one of the largest Motorola stockholders, I continue to have concerns about the speed and manner in which a new management team is selected for the mobile devices business and the separation transaction is consummated.”