Motorola will split into a handheld device business and another one focusing on broadband and mobility. This decision was made under tremendous pressure from Carl Icaan.
Is this a good move for the company? I think it is because Motorola is a company full of brilliant people who seem to suffer from terrible management and oodles of red tape which zap the company’s synergies.
In addition, based on discussions with past Motorola employees, there seems to be a culture that is hesitant to change within the organization.
This sort of culture in the technology space can be deadly.
Splitting into two companies will not eliminate many synergies as there don’t seem to be too many today. In addition, there is a chance a reduction in red tape will allow some of the talent in the company to have a greater impact on new product development and strategy.
I am sure there is a hope that change will help bring the culture in line with the times.
So in the end, this move can only be seen as positive with a worst case scenario being similar results to a pre-split Motorola.
By the way, if you think you would make a good Motorola CEO, the company is looking.