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All the way back in 2008, Motorola announced that it planned to spin off its mobile device business in order to create two separate companies. That announcement was followed by layoffs with a plan to complete the split in 2009. At least, that was the plan before the economy tanked and Motorola decided it was best to hold off any split.
Now it seems that Motorola’s board of directors believed that 2011 would be a better year to initiate a clean break. As such, Motorola is no more. The company’s assets have been divided between two separate and independent companies to create Motorola Solutions and Motorola Mobility. As part of the split, stockholders received 1 share of Motorola Mobility Holdings common stock for every 8 shares of Motorola Inc. stock. Once the distribution of the Mobility Holdings stock was completed, Motorola Inc. initiated a 1-for-7 reverse stock split.
Motorola Solutions offers communication solutions for enterprises and governments while Motorola Mobility is more consumer focused and includes the manufacturing of mobile devices, including those under the Droid brand, along with home-based devices, such as digital set-top boxes and end-to-end video solutions.
On Tuesday, the two companies began trading on the New York Stock Exchange under their own stock symbols which are MSI and MMI respectively. To mark the occasion, Motorola Mobility’s management team rang the opening bell at the NYSE while the Motorola Solutions team rang the closing bell. Motorola Solutions will be led by its President and CEO, Greg Brown, while Motorola Mobility will be headed up by its CEO and Chairman, Sanjay Jha.
