Carl Icahn finally got what he wanted; Motorola plans to split into two separate publicly traded companies. Reports indicated that this split would happen in 2009; however Icahn questions why it will take the company until then to complete the separation.
Carl Icahn, who currently owns 6.3 percent of the company, has been pressuring the company to split off its declining cell phone business in order to focus on other ventures such as computing and communications equipment. With the stock price falling and Motorola losing market share this split is seen as relief for many individuals inside and outside the company, including Icahn. This is a large step forward in Icahn’s ongoing proxy battle for larger control of the company. Shareholders will likely be able to own stock in both of the new companies tax free. This is a defining point, and proof that Carl Icahn might just save Motorola.
4 responses so far ↓
1 Oscar // Mar 28, 2008 at 8:34 am
Interesting, I would wonder also why it would take so long for this to happen. They are not that great at cell phones anymore. It’ll be interesting to know how this plays out. Maybe its time to buy some Motorola stock as it is now. NYSE: MOT
2 Boring Market // Mar 28, 2008 at 11:39 am
Well, It took so long to happen because splitting a public company is very hard to do because it could have a huge impact on a stock and it shows that Motorola is no longer able to be into the cell phone business. This is coming off the heels of years of great success. For now I think the stock is a long term investment and I would personally rate it as a hold. I strongly advise anyone to neither sell or buy this stock and if your already invested to wait it out.
3 Oscar // Mar 31, 2008 at 12:50 pm
hmm interesting. I do have some, I actually bought a bunch just before I read your article. definitely with a plan to hold it for a while. Thanks for the articles. Hey, have you looked at “subscribe to comments” its a pretty cool plugin, it lets your readers check a box to get updates when someone comments to an article that they also replied to. Have a good one.
4 Boring Market // Mar 31, 2008 at 9:12 pm
Thanks for your continually participation with the comments. I’ll look into getting that plugin when I update the site, which is coming really soon.
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