Razr Cracks, Motorola Could Break
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The evidence is mounting that Motorola is looking at a break-up of the company, following a slump in sales of its Razr mobile phone. Activist investor Carl Icahn, who has been campaigning to get on Motorola’s board, says carving up Motorola could produce almost US$20 billion of additional shareholder value.

Analysts caution that Motorola needs to fix underlying problems in the handset division to maximise the value. They say breaking Motorola into stand-alone units would highlight uncertainties facing its lesser-known businesses and would go against the trend of consolidation in the telecommunications-equipment business.


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Motorola has three divisions: the mobile-devices operation; the enterprise-and-government division, which makes public-safety radios and handheld devices for workers on the road; and the home-and-networks division, which makes cable-television set-top boxes and telecommunications-network gear.