Wednesday, March 26, 2008
The Motorola Split

Every tech blog and that blog's neighbor are talking about the Motorola split today. I don't particularly care one way or the other, but I am sure with our dim economy we'll be seeing more mergers/splits and business demise. So let's briefly discuss, ok?

It is true. Motorola announced it's splitting into two companies: a "Mobile Devices" company that makes cell phones, and a "Broadband & Mobility Solutions" company with all the other parts of Moto. Existing stock holders will get shares in both companies.

Here is an excerpt from the press-release:
Based on current plans, the creation of the two stand-alone businesses is expected to take the form of a tax-free distribution to Motorola's shareholders, subject to further financial, tax and legal analysis, resulting in shareholders holding shares of two independent and publicly-traded companies:
The Mobile Devices business is an industry leader in multi-mode, multi-band communications products and technologies. The business designs, manufactures and sells mobile handsets and accessories globally with integrated software solutions that incorporate the latest personal communications technologies. It also licenses a portfolio of intellectual property.

The Broadband & Mobility Solutions business includes Motorola's Enterprise Mobility, Government and Public Safety, and Home and Networks businesses. These businesses manufacture, design, integrate, and service voice and data communication solutions and wireless broadband networks for enterprises and government and public safety customers worldwide. These businesses also provide end-to-end digital and Internet Protocol (IP) video solutions, cellular and high speed broadband network infrastructure, cable set-top receivers, and associated customer premise equipment for residential and commercial wireless network system access.
There is a lot going on in Motorola world. Not just a company split.

Airvana, Inc. is getting involved in many media companies so as to heighten the "mobile experience." Motorola is known around the world for innovation in communications and so it is only natural evolution that is causing this change. Of course when you hear about changes everyone panics. People leave companies, shareholders sell, etc. I think it is foolish in this instance, but obviously I'm not working on Wall Street.

Motorola has termed these changes "Long Term Evolution" (LTE for short). LTE is an all-IP, OFDM-based technology that will deliver a personal media experience similar to that of fixed line broadband both in terms of bandwidth and latency. With LTE, applications that can be delivered today on fixed line will soon be available over the air and with full mobility.

Does that sound like something to run from or embrace?

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