Motorola splits into two companies; Mobile Devices and Broadband & Mobility Solutions

Telecommunications company Motorola has announced that it will split into two distinct, independent and public companies.

The news comes as one of its most vocal investor, billionaire Carl Icahn pushed forward to kick out the mobile-phone business branch which is bleeding money but which has been the most visible aspect of Motorola for a while.

This part of Motorola will be known as the Mobile Devices business and will be headed by a new Chief Executive Officer.

The Broadband & Mobility Solutions business will take care of the company's existing network equipment, cable TV set-top boxes and two-way radios division.

Motorola's share in the mobile phone market has been falling substantially while its rivals were enjoying positive growth, even as the global economy slowed down.

It failed to replicate the success of its Razr phone which has been superseded by a new generation of web-aware smartphones like the Nokia N95 which are equipped with multi mega pixels digital cameras and GPS.

The news saw Motorola shares rising slightly, pointing to the frailty of the company as it struggles to catch up its rivals.