CHICAGO — Motorola is banking on a plan to separate its foundering cellphone unit from the rest of the company, yet analysts are mixed on whether the gamble will actually yield big dividends. The plan to split the company in two, announced Wednesday, comes after months of speculation, shareholder pressure and hand-wringing.
Motorola’s TV set-top box and modem business and a unit that sells computing and communications equipment would remain under the stewardship of chief executive Greg Brown.
A search is underway for a new CEO for the handset business who will focus on regaining the favor of customers and Wall Street.
“The news that has been coming out of Motorola for the past many years has been lousy,” said Jeff Kagan, an independent telecom analyst.
“This could be the scent of a new company forming, and the question is, ‘Will the new company act and perform differently and better?’ We don’t know yet.”
Executives hope the tax-free split, which they expect to complete next year, will quicken the turnaround of Motorola’s handset business. The Associated Press
