After some soul searching, it appears that Motorola has decided to reconfirm its commitment to its mobile device business. Only weeks ago, Motorola confirmed that it was looking at the possibility of dropping its mobile devices unit. But yesterday, Motorola CEO Greg Brown confirmed that Motorola is staying in the business. “I don’t want there to be any confusion,” he said at the Mobile World Congress. “Motorola is fully committed to the mobile devices business and I am fully committed to mobile devices.”
As one analyst noted though, Motorola will need to commit to its mobile division to ensure that if it does spin it off later, it gets a decent return on it. Let it slide too far and it will only go for a fire sale price.
At the present time, Motorola’s phone unit is valued at up to USD$12 billion by analysts. I suspect we are not done with this story yet.
Source: CNET News