14 DAY TRIAL // Not too long ago, leading telecommunications company Motorola announced that it plans on separating its business in two, and unveiled additional details on the matter recently. According to the company, it filed an initial Form 10 Registration Statement with the U.S. Securities and Exchange Commission (SEC). The current Mobile Devices and Home businesses are set to separate from the company to become Motorola Mobility. As for Motorola, it should become Motorola Solutions, Inc, and should include the current Enterprise Mobility Solutions and Networks businesses.
“The filing of the Form 10 Registration Statement is an important achievement in our Separation plan to create two independent, publicly traded companies,” said Sanjay Jha, co-CEO of Motorola. “Mobile Devices has made significant progress in 2010, and we are confident that the Separation is the right strategy for Motorola, our stockholders, our customers, our partners and our employees. Together, Mobile Devices and Home are uniquely positioned to address the opportunities resulting from the convergence of media, mobility, the Internet and computing.”
According to the company, it has established a new wholly owned subsidiary, Motorola SpinCo Holdings Corporation (Motorola SpinCo), which filed today’s Form 10 Registration Statement. The new entity is the holding company for Motorola Mobility, Inc., its main U.S. operating company. “We are very pleased with the significant financial and operational progress that Greg’s and Sanjay’s businesses have accomplished. Upon Separation both businesses will be well capitalized and poised for stand-alone success,” said David Dorman, chairman of Motorola’s Board of Directors.
The completion of the separation between the two companies is subject to customary conditions, including the final approval by Motorola’s Board of Directors, as well as effectiveness of the Form 10 Registration Statement filed with the SEC. The move does not require approval by Motorola’s stockholders. However, for the time being, there are not certainties regarding the possibility that the separation would indeed be performed. More info can be found here.
Greg Brown, co-CEO of Motorola said, “Motorola Solutions will be a world-class company composed of two great businesses. The Enterprise Mobility business is a worldwide leader in providing public safety and enterprise mobility solutions. Our Networks business has a proven track record of technology leadership and solid operating performance. We expect the Separation will further enable these businesses to address the needs of our customers and partners around the world. I thank our dedicated employees, valued customers, and other stakeholders for their continued support.”