Motorola to split in January
After a process that has taken over
, Motorola has finally set 4 January 2011 as the date on which it will split into two firms, Motorola Solutions and Motorola Mobility.
Motorola Solutions will take charge of the firm's enterprise and public sector comms solutions business, while Motorola Mobility will be spun out to focus on the consumer and mobility lines.
Immediately before the markets open on 4 January, Motorola shareholders are to receive one share of Motorola Mobility stock for every eight they currently hold.
Following this, a 1-7 reverse stock split of Motorola shares will take place, at which point the firm will be renamed as Motorola Solutions. The firm hopes this will improve the marketability of its stock.
In a statement, Motorola's joint CEOs Greg Brown and Sanjay Jha said: "[The] announcement marks another important milestone toward the upcoming separation that is expected to benefit Motorola, its stockholders, as well as each company's respective customers and employees.
"We look forward to taking advantage of the opportunities before us as we begin the new year as two independent, publicly traded companies," they added.
Following the split, Brown is to take charge of Motorola Solutions, while Jha will become CEO of Motorola Mobility.