A day after appointing Edward Zander as its new CEO, Motorola (NYSE:MOT) filed a $2 billion initial public offering for the Class A shares of its semiconductor unit. Motorola will retain ownership of all of the Class B shares of SPS Spinco, the temporary name of the group.
In early October, Motorola announced that it would spin off the unit, just weeks after CEO Christopher Galvin declared his resignation. Galvin, whose grandfather founded Motorola 75 years ago, was at odds with the company's board of directors over the future of the company. Galvin was seen as indecisive and resistant to change. His ouster helped facilitate the long-anticipated spin off of SPS.
By cutting SPS loose, Motorola can better focus on its struggling communications business, where it has fallen behind Nokia (NYSE:NOK). That unit has seen some difficulties of late, failing to meet key holiday-season deadlines with its trendy camera phones. With the cash from the IPO, Motorola might also be looking to make acquisitions to help it compete.
No shock or surprise here -- just anticipation. With a fresh face at the helm and a greater focus on its strength, Motorola is taking the necessary steps to get back on track.
Get your thoughts in on the Motorola discussion board - only at Fool.com. Jeff Hwang can be reached at [email protected].
