Motorola Amputates Handset Division
Motorola haven’t had an easy time of it lately. They’re the third biggest handset manufacturer, behind Nokia and Samsung. They created the Razr, one of the biggest selling mobile phones ever created. Where did it all go so wrong?
Today, Motorola announced that they are splitting into two publicly traded entities. This will separate its loss-making handset division from its other, more profitable divisions. These include network equipment, walkie-talkies and business products.
This move occurred after famous Wall Street investor Carl Icahn warned that Motorola is a mismanaged company. Icahn is the company’s second biggest investor. He pressurised Motorola to boost shareholder returns. In response to this, Motorola announced a strategic review in January. No potential buyers have emerged.
Source: Reuters
Tags: motorola
