To form mobile and business companies.
Motorola has announced it will be splitting up in two companies next year on Jan 4, 2011. The split aims to benefit the company’s shareholders and the corporation itself.
The company will be divided into two entities: Motorola Mobility, which will handle set-top boxes and of course, the mobile section; and Mobility Solutions which will focus on getting the monies rolling aka the ‘business’.
For stockholders, this is how it is going to pan out
- The distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. stockholders of record as of the close of business on Dec. 21, 2010.
- Motorola, Inc. stockholders of record will receive 1 share of Motorola Mobility common stock for every 8 shares of Motorola common stock they hold.
- Immediately following the distribution of Motorola Mobility common stock to Motorola stockholders, Motorola will effect a 1-for-7 reverse stock split of Motorola common stock, which will become effective prior to the market open on Jan. 4, 2011.
In a joint statement, Greg Brown, Motorola co-CEO and CEO of Motorola Solutions, and Sanjay Jha, Motorola co-CEO and CEO of Motorola Mobility, said: “Today’s announcement marks another important milestone toward the upcoming separation that is expected to benefit Motorola, its stockholders, as well as each company’s respective customers and employees. We look forward to taking advantage of the opportunities before us as we begin the new year as two independent, publicly traded companies.”