Motorola Eyes Breakup of Company to Gain Telecom 'Leadership'

Feb. 1, 2008
Company said it is 'exploring the structural and strategic realignment of its businesses.'

Motorola said on Jan. 31 it is studying a possible breakup of the company in an effort "to recapture global market leadership" in the mobile phone market, and to enhance shareholder value. The struggling company based in Schaumburg, Ill., said it is "exploring the structural and strategic realignment of its businesses." This may include the separation of its Mobile Devices division from its other businesses "in order to permit each business to grow and better serve its customers," the company said.

Motorola, once the world's second-largest mobile phone maker, after Nokia Corp. of Finland, has since lost its place to South Korean rival Samsung Electronics Corp. amid fierce global competition and watched earnings slide. The company lost $49 million in 2007, swinging to a deficit after a profit of $3.6 billion in 2006 as its problems worsened in the tough market for mobile devices.

Motorola also makes digital set-tops for televisions, cable modems, and markets technology services to consumers and government.

"All of our businesses have exceptional people, products and intellectual property and the ability to achieve category leadership in their markets," said Greg Brown, president and chief executive, who took the job January 1 after Ed Zander stepped down. "We are exploring ways in which our Mobile Devices Business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value of this great franchise."

The company said it would not discuss details of any plan until its board has approved a deal

Copyright Agence France-Presse, 2008

Popular Sponsored Recommendations

Gain a competitive edge with real-world lessons on private 5G networks

Nov. 16, 2023
The use of private networks in manufacturing applications is rapidly growing. In this paper, we present valuable insights and lessons learned from the field with the goal of enhancing...

Discover How an Eye Tracking Study Improves Training Procedures

Oct. 29, 2023
Did you know that your training processes can be streamlined by visualizing and analyzing key skills within your employee base? Find out how we use eye tracking to capture advanced...

The Executive Guide to Best Practices for Ecommerce Integration

Oct. 2, 2023
Get ready to elevate your post-checkout experiences and thrive in today's unpredictable market. Learn why integration and automation are crucial to run operations more smoothly...

You Cannot Stay Competitive by Bolting New Technologies to a Legacy ERP

Oct. 20, 2023
Read this white paper to understand the benefits of shifting to a next-generation ERP system as part of a DOP.

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!