Motorola Inc. will split in two in the first quarter of 2011, combining the mobile-phone and set-top box divisions into one publicly traded company and the enterprise mobility and networks units into a second business.
Sanjay Jha, now head of the handset business, will be the chief executive of the mobile phone and set-top box company, Schaumburg, Ill.-based Motorola said Thursday. Greg Brown, co-CEO of Motorola, will head up the other business.
Motorola had delayed a planned spinoff of the handset business in October 2008, amid the global recession. The company, which has lost market share to rival handsets such as Apple's iPhone , is betting that a combination of the two consumer-focused businesses will win back customers.
The separation will occur through a tax-free stock dividend of shares in the new companies to existing shareholders. Both companies will be "well capitalized," , Motorola said.