Motorola on Thursday said it will split into two separate companies in the first quarter of 2011, roughly a year from now.
The company had initially planned to spin off the mobile devices unit on its own. Now Motorola plans to spin off the mobile devices and home units into one company led by Sanjay Jha, co-CEO of Motorola. Jha will have a portfolio of mobile devices and home entertainment technology such as the company's set-top boxes.
The second company will comprise Motorola's enterprise mobility solutions and networks businesses (statement). That company will be led by Motorola co-CEO Greg Brown.
Brown and Jha will assume their roles as CEO of their respective divisions effective immediately.
Motorola shareholders will get shares of both companies via a tax-free stock dividend. Both companies will use the Motorola brand.