Motorola spinning off Mobility division, pumping it with cash

Alex Wagner
Editorial Director of News and Content from Omaha, NE
Published: June 18, 2010

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Motorola has been planning to spin off the mobile division of its company for some time now, but the actual plans for the split were finally laid out today.  The new Motorola Mobility will be given the best chance possible to survive by being freed from the majority of its debt and liabilities from its parent company, who is planning a massive debt buyback.  After the debt is gone, Motorola will write out a huge check for between $3 and $4 billion to help Mobility to succeed in the mobile marketplace.

Besides the DROID, one of the last hugely successful Motorola handsets was the RAZR several years ago.  However, with the extra cash that they'll be receiving, Motorola Mobility should be able to produce some more quality devices.  Motorola, together with Verizon, will be unveiling some new DROIDs next week, presumably the Droid X and Droid 2.  The company is clearly banking on Android to help propel them back to financial splendor, and if the new DROIDs can repeat the success of the original device, I don't think Motorola will have anything to worry about.

Via WSJ

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