Under pressure from unhappy investors for the past year, struggling cell-phone maker Motorola signaled a willingness to break itself up after more than a year of dismal results and declining market share, media reported Friday.
Motorola said in a statement that separating the mobile devices business, which is dominated by cell phones, would "permit each business to grow and better serve its customers." Its two smaller businesses are home and networks, which sell TV set-top boxes and modems, and enterprise mobility solutions, which sell computing and communications equipment to businesses.
But it is the badly underperforming cell-phone unit which prompted the move.
"We are exploring ways in which our mobile devices business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value of this great franchise," Chief Executive Greg Brown said in the company's statement.
Carl Icahn, the billionaire financier who lost a proxy battle with the company in 2007, said he was pleased to hear that Motorola is exploring a proposal he made last year but pledged another fight for board seats this spring.
"This announcement by Motorola will not deter us from that effort," he said in a statement. "We believe Motorola is finally moving in the right direction but certainly still has a long way to go."
SourceXinhua/Agencies
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