Motorola may soon sell off it struggling mobile devices business in an effort to recapture the market leadership the unit once held and improve company shareholder value.

The unit has been a financial trouble spot for Schaumburg, Ill.-based Motorola for several quarters now, with the company last week reporting significant losses for Q4 and full year 2007 on the business’ poor performance. 

Motorola today announced after the closing bell that it is looking at alternatives for the business that may include the separation of mobile devices from its other two units: enterprise mobility solutions and home and networks mobility.

"All of our businesses have exceptional people, products and intellectual property and the ability to achieve category leadership in their markets," said Greg Brown, Motorola president and CEO, in a statement. "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."

Brown admitted last week in the company’s presentation of Q4 and 2007 numbers that “the recovery in mobile devices will take longer than expected and there is a lot more work to be done.” At that time, he also said Motorola was aggressively rationalizing its cost structure and “working to get mobile devices back on track.”

The company said in its statement today that it does not intend to discuss the alternative plans for the unit unless or until its board of directors has approved a definitive transaction or the process is otherwise complete. “There can be no assurance that any transaction will occur or, if one is undertaken, its terms or timing,” the company’s statement reads.

By: DocMemory
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