Financial Times FT.com

Motorola splits as handset challenges increase

By Paul Taylor in New York and Andrew Parker and Maija Palmer in London

Published: March 26 2008 20:39 | Last updated: March 26 2008 20:39

For Greg Brown, Motorola’s chief executive, the decision to split the 80-year-old company into two separately quoted businesses is a strategic gamble with no guarantees of success.

The timing of the decision – which comes less than three months after Mr Brown took over the top job at Motorola from Ed Zander – underscores the urgent problems confronting the company. These difficulties are most acute at the loss-making mobile phone business, which has seen its global share of the wireless handset market almost halve over the past year.

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