Motorola considers ditching cell phone biz

Will Motorola's Razr 2 be one of the company's last cell phones?

(Credit: Motorola )

Motorola, the third largest cell phone maker in the world, may spin off its handset business as it tries to turn around its business, the company said Thursday.

In a statement issued after the market closed, Motorola said that it was exploring "strategic alternatives" that might include a possible separation of its mobile-device business from its other business units.

"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," said President and CEO Greg Brown.

The company said it will not discuss developments until the board has approved a transaction or until the process is otherwise completed.

Motorola has been in a downward spiral for several quarters as it has lost market share to rivals like Nokia and Samsung. The company ousted its CEO Ed Zander last year and earlier this month appointed Brown as its new CEO.

A more in-depth look at Motorola's decision to possibly spin off the handset division will be posted on CNET News.com shortly. So stay tuned. In the meantime, let us know what you think about the Motorola's possible move.

[the_ricochet]

Maybe they can start making phones that don't crap out? [nt]

[nt]

[coachgray]

Typical Motorola

I worked 12 years for Motorola Semiconductor group and they spun us off. Now they want to spin off the cell phone group. They will keep spinning off until there is nothing left of one of the greatest American companies ever. Whatever happened to bearing down and working harder to be the best again instead of spinning off (GIVING UP). Their arrogance has driven them to complacency and they can?t figure out how to be creative and innovative again. Just another sad chapter in Motorola?s history.

[morton101]

agreed

no one should give up and this goes for motorola, they make the best phones (the original designs). Nothing compares dont give up

[manodud]

like freescale?

Is it gonna be another spin-off like Freescale? Anyway, their cell-phones never function well after 1 year. So might be a good idea to wash hands off of it and let the spin-off company take all the blame hereafter...

[close5828]

Crap phones

I used to love Motorola but they went to cr/p after the V60 line...that was the last good Motorola phone. I bought a RAZR last year and it has been replaced TWICE for dropping calls, lousy earpiece, etc.

I got a Nokia a few weeks ago and it's never dropped a call and the voice quality is great. I'll never own another Motorola again...