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Motorola Considers New Plan for Spinoff


By Allen Tsai | Thu Feb 11, 2010 6:11 am

Motorola is considering a new plan to merge its handset business with its set-top box group, in hopes that the new combined unit can be spun off into a publicly traded company.

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The Schaumburg, Ill.-based company reversed a months-old plan to sell off its three largest divisions -- which makes set-top boxes, handsets, and wireless-networking gear -- after it introduced a series of smartphones built around Google's Android platform.

It now will likely chop that group in two -- continuing to look for buyers for its wireless-networking business, but merging its set-top box unit with its handset unit into a new, publicly-traded company.

If completed, Motorola executives believe that handsets and home-video equipment, combined, could help the new firm differentiate itself from rivals by delivering digital video and content services straight to smartphones.

The decision, which still needs to be approved, was discussed in a series of high-level board meetings late last month.

"We are moving full steam ahead on separation," said Greg Brown, Motorola's co-chief executive.

As far back as 2008, Motorola considered spinning off its handset division, but it was forced to put the move on hold when the global economic recession lowered the demand for mobile phones.


Posted In: Mergers & Acquisitions (252) | Motorola (408) | Reports (624)


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