Report: Motorola Re-Looks at Break-Up

Thu, 02/11/2010 - 7:25am
Andrew Berg, Wireless Week

Motorola is once again considering a break-up of its handset and set-top divisions. According to a report from The Wall Street Journal, citing people familiar with the matter, Motorola is backing off a plan to sell off its set-top box and wireless networking division. 

Instead, the company reportedly would split that unit in two, auction off its wireless networking business, and then join the set-top division with its handset business to create one publically traded company.

Reports of Motorola reorganizing are nothing new. A spin-off the company's handset division has been on the table for a long time but was stalled indefinitely as the company struggled to return to profitability.

In the last 12 to 18 months, the company has made great strides with its handset division since adopting Android as its platform of choice. The company's much-hyped Droid smartphone for Verizon Wireless has received some acclaim recently.

In a recent earnings call, Motorola promised 20-25 Android handsets in 2010, as well as a return to profitability by the fourth quarter. The company’s handset division accounted for about $7 billion in total revenues for 2009.

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