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Motorola Left Holding Troubled Handset Unit

With no buyer in sight for wireless equipment division, company may look to self-reform

By Laila Weir,  Newser User

Posted Feb 25, 2008 12:07 PM CST

(Newser) – It’s looking increasingly important for Motorola to shore up its troubled handset unit itself, as no buyers have materialized in the near-month since the company said it was exploring options for the business, reports BusinessWeek. Fixing the problematic division would make it easier to attract a higher sale price, spin it off as a more valuable asset, or even retain the unit.

Motorola’s CEO has shown interest in reforming the handset group, having taken operational control of it himself and purged executives. He has his work cut out for him, however, with the unit losing money in the last quarter, and its share of cellphone shipments dropping from 22% in 2006 to 13.8% last year.

An undated photo provided by Motorola Inc. shows new chief executive Greg Brown. Brown replaced Ed Zander Jan. 1, 2008, and will try to end a slump without a Razr-like hit that his predecessor had when he arrived at the Schaumburg, Ill.-based company four years ago. (AP Photo/Motorola Inc....
An undated photo provided by Motorola Inc. shows new chief executive Greg Brown. Brown replaced Ed Zander Jan. 1, 2008, and will try to end a slump without a Razr-like hit that his predecessor had when...   (Associated Press)
A Motorola Razr cell phone is seen at a consumer electronics store, in this Friday, Jan. 19, 2007, file photo in Gloucester, Mass. Motorola Inc.'s new CEO Greg Brown spooked investors Wednesday, Jan. 23, 2008, with a gloomy assessment of the cell phone maker's inability to turn around its...
A Motorola Razr cell phone is seen at a consumer electronics store, in this Friday, Jan. 19, 2007, file photo in Gloucester, Mass. Motorola Inc.'s new CEO Greg Brown spooked investors Wednesday, Jan....   (Associated Press)
Motorola's new line of MOTORAZR2's are seen in this Sept. 12, 2007, file photo in New York. Less than two years past the most successful stretch in its 80-year history, Motorola Inc. is considering a sale or spinoff its now free-falling cell phone business. (AP Photo/Mark Lennihan , file)
Motorola's new line of MOTORAZR2's are seen in this Sept. 12, 2007, file photo in New York. Less than two years past the most successful stretch in its 80-year history, Motorola Inc. is considering a...   (Associated Press)
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