Motorola Inc. announced plans to divide into two publicly traded companies as soon as the first quarter of next year as it endeavors to realign incongruent elements of the businesses.
The Illinois based company has been moving toward separating its devices businesses for time but recent changes have been imparted on earlier plans. The current arrangement will have Motorola bundling the mobile devices unit with the home division, beneath the command of co-Chief Executive Sanjay Jha.
Enterprise mobility and networks businesses will be run by co-CEO Greg Brown. The goal is for a more streamlined configuration for customers.
The division of the company will occur as a tax-free dividend of shares in a new company to shareholders. Brown’s enterprise mobility division will take on the debt estimated to be $3.3 billion by the start of 2011.
Both companies will hold on to the Motorola name while Jha's division will hold ownership over the brand, and make it available for licensing to Brown.
Motorola shares saw a 3.9% rise to $6.91 in after-hours trading.
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