Motorola Inc. is making more progress toward its projected first-quarter 2011 spinoff.
On Thursday, the company said it will change its name once its splits in two Motorola will become Motorola Solutions Inc. That unit will be comprised of the Enterprise Mobility Solutions and Networks businesses. The Mobile Devices and Home segment will break off and become Motorola Mobility.
For now, Motorola is filing its updates with the Securities and Exchange Commission under a new subsidiary, Motorola SpinCo Holdings Corp.
The Schaumburg, Ill.-based company is breaking itself apart as it struggles to compete in the mobile devices sector. That division once led the gear-makers profits, thanks mostly to the once-popular RAZR phone, but in recent years has suffered as the iPhone, BlackBerry and other smartphones have dominated the market. Sanjay Jha, Motorolas co-CEO, said the mobile devices business has made significant progress in 2010, and we are confident that the separation is the right strategy.
To be sure, Motorola has regained some ground with the iPhone-rival Droid smartphone, powered by Googles operating system. Jha will lead Motorola Mobility while Greg Brown, also co-CEO of Motorola, will oversee Motorola Solutions.
Motorola expects the spinoff to qualify as a tax-free transaction; stockholder approval is not required for the deal to be completed. Motorola Mobility and Motorola Solutions will continue to trade publicly.
Shares of Motorola were trading .31 percent higher by 1:22 p.m. Eastern, at $6.54.