Motorola Sells Unit, Preparing for Split-Up

Electronics giant Motorola has sold off a wireless equipment unit, a prelude to a split-up next year that could leave the public safety radio division as the company’s revenue leader. For decades Motorola’s various divisions maintained significant market share for cellular handsets, electronic components, two-way radios and wireless systems. But competitors have continued to chip away at Motorola’s revenues over the past five or six years. As a result, last year the company decided to create separate companies from its divisions to maximize the value of its stock. In this latest sale, Motorola sold its wireless systems division to Nokia Siemens for $1.2 billion. The unit includes various gear and systems used by cellular companies. The sale leaves two divisions that will be split into two companies next year: public safety radio and other wireless gear (Enterprise Mobility and Networks), and cable set-top box and cellular handsets (Mobile Devices and Home). For 2009, the Enterprise Mobility unit posted a $714 million profit, leading the company. The Mobile Devices division posted a $1.2 billion loss for 2009, while the Networks division posted a $366 million profit.