Moto Rola - the split

With its mobile unit, becoming unprofitable, Motorola has decided to split into two. this action, is reportedly taken after a two-month strategic review of the business. Carl C Icahn is reportedly behind pressurizing the company to make such a move. Gregory Q. Brown, Motorola’s chief executive, accepted that the main problem facing the company was its inability to come up with new products to replace the highly successful Razr, which was once a must-have phone but has faded from the scene. with competition in the arena increasing and with iphone adding to Motorola's troubles, it is high time they start innovating at a more consistent and a faster rate. This split shall also help Motorola to diversify its port folio.
Rivals aside, Motorola is also facing pressure from investors — in particular Mr. Icahn — who are dissatisfied with Motorola’s weak stock performance; the shares have dropped 44 percent in the last year. Cellphone production is the largest division of the company, with $18.99 billion in net sales in 2007, a 33 percent decline from a year earlier. Last year, the division lost $1.2 billion. Motorola’s other two units are smaller but profitable.
thus splitting the company seems a clear strategy for Motorola.