News, Motorola Mulls Breakup, Phone Unit Sale. (stock, purchasing, company)

[JD59]

CHICAGO (AP) -- Less than two years past the most successful stretch in its 80-year history, Motorola Inc. is considering a sale or spinoff its now free-falling cell phone business.

Even a breakup of the troubled company may not head off another proxy fight with billionaire financier Carl Icahn.

Motorola Mulls Breakup, Phone Unit Sale: Financial News - Yahoo! Finance (broken link)

[gardener34]

They are mulling actually selling it to a competitor. They should break it off into a separate business entity at least.

That way the other 2 sectors that are currently making big profits, can continue... the cell phone unit can bleed that company dry when it isn't doing well, and the other sectors take the hit for it. Moto is more than just cell phones (60% of their total business I think i read) but the stock flippers only judge the stock on what the cell phone part of the business is doing.

But I guess the purchasing leverage of the company isn't as strong if they break up the units.

Moto is a good international brand with high recognition. This will be an interesting situation - whatever happens.