Motorola Splitting To Ride The Android Wave

Droid 2The Motorola Droid 2.

Photo: motorola.com

Motorola will split into two companies on January 4, 2011: Motorola Mobility will include the mobile phone business, and Motorola Solutions will get everything else.First announced earlier this month by CEO Greg Brown, the split is meant to help investors capitalise on the sudden rise of Android in the smartphone market. Motorola’s Droid phones aren’t necessarily the best Android handsets out there–that honour usually goes to HTC–but it’s certainly been one of the best selling Android phones. And unlike Samsung and HTC, Motorola isn’t splitting its bets among multiple platforms by embracing Windows Phone 7, but is sticking with Android whole hog. 

The division of the company will be accompanied by a reverse stock split, with shareholders getting one Motorola Solutions share for every seven Motorola shares they own today, and one Motorola Mobility share for every eight Motorola shares.

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