Moto splits in two, what will Carl Icahn do with all his free time?
It’s official. Less than two months after announcing it was considering the action, Motorola said today that it will separate its mobile devices business, leaving it with its broadband and mobility solutions business.
I’ve yet to see an official statement from Carl Icahn, the Wall Street raider who has been pressing Moto for board seats and management changes, but it isn’t a stretch to assume he’s happy about this. In a letter to stockholders on Monday, Icahn called for support from shareholders in his two demands: changes to the company board and the spinout of Moto’s mobile devices unit with a new CEO.
Demands from Icahn, who, by the way, is Moto’s second largest shareholder with more than a 6% stake in the company, have been coming for more than a year. His campaign on Moto included a failed attempt at a board seat, a very public war of words, and recent legal action against the Schaumburg, Ill-based company that Icahn believed was necessary to “investigate whether and to what extent the board of directors of Motorola failed in their duties as directors in supervising management and setting policy and direction of Motorola.” In the tremendous amount of time he has devoted to leaning on Moto, Icahn has also shown public disapproval of Greg Brown, Moto’s recently appointed CEO, questioning if he is qualified to run the company.
As I state in our accompanying news coverage (“Motorola spins out mobile devices business”), Icahn had reason to complain based on the company’s financial performance. From a business standpoint, Moto has been drowning for sometime. It’s now dropping a boulder it’s been carrying for sometime in an effort to save itself.
But our readers, many of which are EEs, have taken a different approach and noted Moto’s lack of innovation and poor management of technology in previous EDN blog posts on the trouble at Moto. Now I’m interested in hearing from you again. Will spinning out Moto’s mobile devices business be good for tech innovation? Share your comments below.
–Suzanne Deffree, Managing Editor, News
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