'Moto Out Of Handset Biz' Gets Legs

January 31, 2008

Rich — who is technically on vacation this week — has caught wind of the fact that Motorola is exploring the possibility of spinning off its mobile handset business.

In a press release, Motorola announced:

…it is exploring the structural and strategic realignment of its businesses to better equip its Mobile Devices business to recapture global market leadership and to enhance shareholder value. The company's alternatives may include the separation of Mobile Devices from its other businesses in order to permit each business to grow and better serve its customers.

Rich also wonders aloud who might be interested in potentially acquiring the business from Motorola.

Some have even speculated that a Chinese concern might want to acquire the business, much like Lenovo acquired IBM’s ThinkPad business.

But as I wrote earlier this week:

…if Motorola can’t fix what’s ailing the company why would the Chinese fare any better?