As part of a restructuring strategy, Motorola Inc. will split into two independent, publicly traded companies in the new year. Motorola’s (News - Alert) board of directors have approved the separation of Motorola Mobility Holdings, Inc. ("Motorola Mobility") from Motorola, Inc. through a tax-free dividend involving the distribution of all Motorola Mobility common stock held by Motorola to Motorola stockholders. Plus, it has also approved a reverse stock split of shares of Motorola common stock following the distribution.
As a result, the distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. stockholders of record as of the close of business on Dec. 21. Also, Motorola, Inc. stockholders of record will receive 1 share of Motorola Mobility common stock for every 8 shares of Motorola common stock they hold. Immediately following the distribution of Motorola Mobility common stock to Motorola stockholders, a 1-for-7 reverse stock split of Motorola common stock will become effective prior to the market open on Jan. 4, 2011.
On Jan. 4, 2011, Motorola, Inc. will change its name to Motorola Solutions, Inc. and will begin trading on the New York Stock Exchange (NYSE) under the ticker symbol MSI (News - Alert), and Motorola Mobility Holdings, Inc. will begin trading on the NYSE under the ticker symbol MMI.
In a joint statement, Greg Brown, Motorola co-CEO and CEO of Motorola Solutions, and Sanjay Jha (News - Alert), Motorola co-CEO and CEO of Motorola Mobility, said, "Today's announcement marks another important milestone toward the upcoming separation that is expected to benefit Motorola, its stockholders, as well as each company's respective customers and employees. We look forward to taking advantage of the opportunities before us as we begin the new year as two independent, publicly traded companies."
Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.
Edited by Jaclyn Allard