Motorola wants to sell the mobile phone department?

It has always been said that the motorcycle will sell its mobile phone department. In my impression, the probability of a message being confirmed is very high. However, this message is still unexpected. In fact, it is also true that investors are focusing on money or what investors do. It is said that ZTE, Samsung, and LG are the most likely recipients. Although I do not like Samsung, I still think Samsung is more likely. However, I hope ZTE can purchase the product. M & A is one of the shortcuts for Chinese enterprises to become bigger and stronger. Very good, very powerful!

 

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Motorola considers mobile device spinoff

Possible 'separation' of handset business lifts long-flagging stock

By Dan Gallagher, marketwatch

Last Update: P. M. Est Jan. 31,200 8

San Francisco (marketwatch) -- Motorola Inc. said late Thursday that it's considering spinning off its mobile-device business, which has struggled with falling sales and market share this year due to a lack of compelling products.

Shares of Motorola jumped 10% in after-hours trading after the news was announced. The stock has slid nearly 40% in the past 12 months.

In a statement, the wireless-equipment maker (MOT

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MOT) said it is "processing the structural and strategic realignment of its businesses" as part of an effort to revive its handset business and improve implements holder value.

Among the alternatives the company is considering is some sort of separation of its mobile phone business from its other units.

"All of our businesses have predictional people, products and Intellectual Property and the ability to achieve category leadership in their markets," Chief Executive Greg Brown said in the statement. "we are using ing ways in which our mobile devices business can accelerate its recovery and retain and attract talent while enabling our implements holders to realize the value of this great franchise."

The company added that it won't discuss further developments until its board has decided on a course of action.

Such a move has been the subject of fresh speculation around the industry in recent weeks, as Motorola has worked to come off a bad year in which sales of handsets slid amid waning demand for the company's devices. motorola's last hit was the Razr, which still racks up sales but brings little in the way of profits.

Last week, the company reported an 84% drop in net earnings for the fourth quarter, a loss based largely on the performance of its handset unit. See full story.

The company's troubles have put it under the scope of billionaire activist investor Carl Icahn, who waged a proxy battle against the Board of Directors last year and still remains one of the company's largest holders.

In a statement, icahn said he was "pleased" that Motorola is considering spinning off the troubled mobile device unit but added that the company "still has a long way to go" in reviving its business. he said he still plans to submit an alternative slate of directors at the company's next annual meeting.

"We believe Motorola is finally moving in the right ction but certainly still has a long way to go," he said in the statement.

Earlier this week, an analyst for Nomura International issued a report speculating that Motorola may exit the handset business and instead concentrate on becoming an enterprise and government company.

He added, however, that speculation about potential Chinese buyers for the business is unlikely, as those vendors don't have too ideas about how to revive the unit.

Dan Gallagher is marketwatch's technology Editor, based in San Francisco.