Motorola May Sell Ailing Cell Phone Division

Company struggling against smart phone competition
By Peter Fearon,  Newser Staff
Posted Feb 1, 2008 2:50 AM CST
Electricians connect cables on the back of LED wall at the Motorola booth at the Las Vegas Convention Center in preparation for the opening of the Consumer Electronics Show. (AP Photo/Jae C. Hong)   (Associated Press)
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(Newser) – Motorola, battered by more innovative competitors in the cell phone industry, is considering spinning off or selling its flagship mobile phone division to concentrate on other parts of its business. Motorola, which once rocked the industry with its innovative StarTAC flip phone and the ultra-slim Razr, now plans to refocus on TV set-top boxes, telecommunications network hardware, police radios and walkie talkies, reports the Wall Street Journal. But a top executive emphasized Motorola itself "is not for sale."

The Motorola board has been under pressure to take decisive action by activist shareholder Carl Icahn, who owns 3.3% of the company and wants to nominate several directors to the board. "We think they are moving in the right direction, but they still have a lot of moving to do," Icahn said of the proposed division sale.