Motorola Completes Mobile Spin-Off
Motorola on Tuesday said that it had completed a spin-off through which the Schaumburg, Ill., firm will separate its mobile division as a stand-alone company.
Under the long-planned arrangement, the Motorola Solutions and Motorola Mobility today each began trading on the New York Stock Exchange as separate companies.
Motorola Mobility (NYSE: MMI) consists of the mobile devices division, including a broad portfolio of Android handsets, and in-home equipment such as set-top boxes.
As a standalone, Motorola Mobility looks to ride the momentum of the successful Droid line of smartphones, and is widely expected to enter the tablet fray at the Consumer Electronics Show this week, making it one of many device makers poised to unveil computers that seek to rival Apple's (NASDAQ: AAPL) iPad.
"We are pleased that Motorola Mobility has reached this important milestone," Sanjay Jha, chairman and CEO of the new company, said in a statement. "We are well-positioned to build on the strong momentum we have in smartphones and end-to-end video solutions -- and to take advantage of opportunities resulting from the convergence of media, mobility, computing and the Internet."
Greg Brown will serve as president and CEO of Motorola Solutions. Brown and Jha had served as co-CEOs of Motorola Inc.
Under the agreement, investors who owned shares of Motorola as of Dec. 21, 2010, received one share of Motorola Mobility for every eight shares they held of Motorola Inc. On the heels of that distribution, Motorola completed a one-for-seven reverse stock split.
To mark the occasion, Jha and other executives at Motorola Mobility rang the opening bell at the New York Stock Exchange, and Brown and members of the leadership of Motorola Solutions plan to ring the closing bell.
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