Motorola's Spin-Off of Its Cell Phone Business

In March 2008, Motorola, Inc. announced that it would split itself into two publicly traded companies by spinning off its largest division — the unprofitable mobile devices handset unit. However, Motorola was so deeply identified with its cell phone products that many people did not know much about its other lines of business. In this case, students review Motorola"s financials and organizational structure in order to analyze the reasons for the spinoff and to consider how the firm must prepare for this momentous shift in strategy.