Motorola splits business units into 2 companies

Endless convulsing seems to be the only constant under Moto’s new management. A split between carrier and consumer device businesses made a lot of sense same time ago, and now it’s actually so. I wonder if both of Moto’s businesses would not be in better shape now if this had been done while business was still very good.

The suburban Chicago-based cell phone maker has been under pressure from billionaire investor Carl Icahn for changes meant to revitalize its cell-phone business. The cell phone unit has seen its sales and stock price plummet with the company unable to produce second act to the once-popular Razr phone.

Motorola said the handset business will operate separately from another company that will encompass its home and networks business, which sells TV set-top boxes and modems, and its enterprise mobility solutions, which sells computing and communications equipment to businesses. (Yahoo News)

Another good outcome could be Carl Ican making enough money to go away. While he may be very good at shaking up complacent management, he’s not been good for companies he’s stayed involved with over the long term.