Motorola to Split Into Two Companies; Shares Up

Wednesday, 26 Mar 2008 | 7:44 AM ET

Motorola plans to separate its struggling handset business from its other operations.

Carl Icahn
Shiho Fukada
Carl Icahn

The Schaumburg, Ill., company has been under pressure from billionaire investor Carl Icahn to make changes to revitalize its cell-phone business.

Motorola said Wednesday it will split the handset business from a separate company that will encompass its home and networks business, which sells TV set-top boxes and modems, and its enterprise mobility solutions, which sells computing and communications equipment to businesses.

Chief Executive Greg Brown says the move will provide "more targeted investment opportunities for our shareholders."

Motorola shares rose 5 cents to $9.81 in premarket trading.

  Price   Change %Change


Contact Mobile


    Get the best of CNBC in your inbox

    › Learn More
  • Matt Hunter is the senior technology editor at CNBC.com.

  • Cadie Thompson is a tech reporter for the Enterprise Team for CNBC.com.

  • Working from Los Angeles, Boorstin is CNBC's media and entertainment reporter and editor of CNBC.com's Media Money section.

  • Jon Fortt is an on-air editor. He covers the companies, start-ups, and trends that are driving innovation in the industry.

  • Lipton is CNBC's technology correspondent, working from CNBC's Silicon Valley bureau.

  • Mark is CNBC's Silicon Valley/San Francisco Bureau Chief covering technology and digital media.