Motorola to spin-off handset unit

We've all heard the rumors, so this should come as no surprise: Motorola has decided to spin-off its struggling handset business at the behest of investors. The plan calls for the creation of two independent and publicly traded companies: Mobile Devices and Broadband & Mobility Solutions, the latter of which will house the enterprise and the home networking businesses. Motorola plans to make the move some time in 2009, and the spin-out will take the form of a tax-free distribution to shareholders.

Nearly every other detail about the strategy remains unannounced and possibly undecided. Will both companies' retain the Motorola brand? Motorola CEO Greg Brown assured callers on the investors' conference call today that he "clearly recognize[s] the importance of Motorola's brand for both companies" and that issues about branding are among those unresolved. While it's difficult to imagine the handset business losing the Motorola brand, Brown noted that the brand is also trusted on the networking and enterprise side, too. Other unresolved issues include intellectual property rights as well as shared services and systems.

For more on the plan:
- see this press release