Company announces breakup of mobile device and wireless system units

Motorola has revealed plans to split its Mobile Devices and Broadband & Mobility branches into two separate businesses.

The decision follows two months of deliberation in which the company evaluated its options.

Motorola had been looking for a new course of action during a rough 2007 which saw quarterly profits drop by as much as 84 per cent.

The Mobile Devices unit will take over Motorola's handsets, accessories and related software.

The Broadband & Mobility unit will assume responsibility for wireless network and broadband operations.

"Our decision to separate our Mobile Devices and Broadband & Mobility businesses follows a review process undertaken by management and directors, together with independent advisors," said Motorola president and chief executive Greg Brown.

Creating two companies will provide greater flexibility, more tailored capital structures and increased management focus, he argued.

Brown will remain in control of the Broadband & Mobility company, while a chief executive for the Mobile Devices operation will be chosen later.

Both companies will remain publicly traded. Motorola expects to finish the split in 2009.