Motorola (NYSE: MOT) reportedly has an all-new plan for how the company will be broken up.
The Schaumburg, Ill.-based company is now considering turning its core handset business into a new, publicly traded company, while also splitting its most profitable wireless-networking and set-top division into two, reports the WSJ. According to people familiar with the deal, the wireless-networking business would be auctioned off, while the set-top business would be spun off.
For more than a year, the company has been mulling various strategies, which at times included selling either the networking or the handset divisions.
If the new plan, which still needs to be finalized, is put into action, Motorola could be at least one-third of its current size, and have around $7 billion in sales (compared with $22 billion in sales in 2009). Its new business would be focused on selling equipment for public-radio systems and bar-code scanners. There were no details on how a standalone handset business would look like, however, that division is expected to be profitable in the fourth quarter thanks to the company’s aggressive smartphone moves.
In Motorola’s Q4 conference call in January, executives said the company is still moving “full steam ahead on separation” of Motorola, and added the company is “continually working on the appropriate structures for separation.”

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