Motorola Inc. announced a plan to split its cell phone business from other operations to form two separate publicly traded companies.
The company said the move will allow the two companies to better focus on their respective strengths and weaknesses, while accelerating the turnaround plan for the cell phone unit.
"The creation of the two independent publicly traded companies provides improved management focus and a capital structure that's more tailored to the individual business needs," said Chief Executive Greg Brown, who will remain at the helm of the split company's non-cell phone unit. "And it will provide some improved alignment and agility and will help us going forward."
Specifics of the deal weren't disclosed, but Motorola said its handset business will operate separately from another company offering its TV set-top boxes and modems and its computing and communications equipment.
Motorola said it anticipates the transaction will be tax-free, allowing shareholders to own stock in both of the new companies. If the deal is approved by regulators, the two units would be separated in 2009.