Motorola's long-awaited breakup now has a date. On Jan. 4, Motorola will spin off its handset unit as a separate company.
In a statement, Motorola formalized its plans. Among the key details:
- Motorola shareholders will spin off Motorola Mobility as a tax-free dividend. Motorola Mobility will be distributed to all Motorola shareholders. Motorola shareholders will get 1 share of Motorola Mobility for every 8 shares of the company they hold.
- Motorola will conduct a 1 for 7 reverse split as soon as the distribution is made.
- The Motorola Mobility distribution will happen before market open Jan. 4.
- Shareholders as of Dec. 21 will get the spin-off shares.
- Motorola will then change its name to Motorola Solutions and trade under the ticker MSI. Motorola Mobility will trade under MMI.