Apparently Two Motorolas Are Better Than One
Shares of Motorola’s cellphone-making unit rose on Tuesday while the remaining Motorola Solutions unit held steady, making the newly divided Motorola more valuable than the unit had been as a combined entity.
The cellphone-making part, Motorola Mobility, saw its shares increase nearly 10 percent to $33.12, while Motorola Solutions stock closed unchanged at $39.77.
The split has been a long time in the making. Owners of the old Motorola got one share of Motorola Mobility for each eight shares they owned and the remaining company then underwent a one-for-seven reverse stock split. The two halves had been trading separately on a “when issued” basis for a while now.
Both of the company’s leaders praised the move and promised that only good things will come of it.
“After more than two years of planning, today we begin operating as a financially strong, independent company trading on the New York Stock Exchange,” Motorola Mobility CEO Sanjay Jha said in a statement, touting the company’s smartphone and video business.
Motorola Solutions’ CEO Greg Brown sounded an equally optimistic note.
“With a purpose-driven brand and a strong balance sheet, we are very well positioned for the future,” Brown said.
For now, the two companies have joint custody of the name and logo. Motorola has also split its Web site in two (see below) with options pointing to each of the now separate Motorolas. Or would that be Motorolae, or perhaps Motoroli?