Motorola To Spin Off mobile phone Business

Carl Icahn gets his wish: Motorola (MOT) will split into two public companies, the first focusing on mobile phones, the second focusing on broadband and wireless equipment, ranging from WiMax transmitters to cable set-top boxes.

The breakup is scheduled for 2009 in the form of a tax-free distribution to shareholders, which will own shares in both companies.

In the meantime, Motorola is looking for a new CEO for its mobile phone business. The fact that they’ll be heading up a public company — and not a division of a telecom conglomerate — should help. Current CEO Greg Brown and others will discuss the move during a conference call at 8:30 E.T.; we’ll cover it live. (Update: Analysis, live notes here.)

MOT shares are up 7% in pre-market trading.

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