Motorola Splitting Into "Solutions" And "Mobility" Next Month
Motorola isn't the same company you once knew, or they won't be shortly. After bringing their cellphone unit back from the grave in recent years, the company is planning to finalize a split on Jan. 4, 2011. The company's board recently approved the separation of Motorola Mobility Holdings, Inc. (“Motorola Mobility”) from Motorola, Inc. through a tax-free dividend involving the distribution of all Motorola Mobility common stock held by Motorola to Motorola stockholders and has also approved a reverse stock split of shares of Motorola common stock following the distribution.
That sounds like a bunch of business-babble to most of you, but here's what will result from the split:
* The distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. stockholders of record as of the close of business on Dec. 21, 2010.
* Motorola, Inc. stockholders of record will receive 1 share of Motorola Mobility common stock for every 8 shares of Motorola common stock they hold.
* Immediately following the distribution of Motorola Mobility common stock to Motorola stockholders, Motorola will effect a 1-for-7 reverse stock split of Motorola common stock, which will become effective prior to the market open on Jan. 4, 2011.
On Jan. 4, 2011, Motorola, Inc. will change its name to Motorola Solutions, Inc. and will begin trading on the New York Stock Exchange (NYSE) under the ticker symbol MSI, and Motorola Mobility Holdings, Inc. will begin trading on the NYSE under the ticker symbol MMI. Enjoy this last month of one Moto; after the new year, it's a brave new world for two new companies.
That sounds like a bunch of business-babble to most of you, but here's what will result from the split:
* The distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. stockholders of record as of the close of business on Dec. 21, 2010.
* Motorola, Inc. stockholders of record will receive 1 share of Motorola Mobility common stock for every 8 shares of Motorola common stock they hold.
* Immediately following the distribution of Motorola Mobility common stock to Motorola stockholders, Motorola will effect a 1-for-7 reverse stock split of Motorola common stock, which will become effective prior to the market open on Jan. 4, 2011.
On Jan. 4, 2011, Motorola, Inc. will change its name to Motorola Solutions, Inc. and will begin trading on the New York Stock Exchange (NYSE) under the ticker symbol MSI, and Motorola Mobility Holdings, Inc. will begin trading on the NYSE under the ticker symbol MMI. Enjoy this last month of one Moto; after the new year, it's a brave new world for two new companies.
Motorola to Complete Separation on January 4, 2011
November 30, 2010
* Motorola Mobility distribution ratio will be 1 share for every 8 shares of Motorola common stock
* Motorola, Inc. reverse stock split ratio will be 1 share for every 7 shares of Motorola common stock
* Motorola, Inc. to change name to Motorola Solutions, Inc.
SCHAUMBURG, Ill., Nov. 30, 2010 – Motorola, Inc. (NYSE: MOT) today announced that its board of directors has approved the separation of Motorola Mobility Holdings, Inc. (“Motorola Mobility”) from Motorola, Inc. through a tax-free dividend involving the distribution of all Motorola Mobility common stock held by Motorola to Motorola stockholders and has also approved a reverse stock split of shares of Motorola common stock following the distribution. As a result, the following will occur:
* The distribution will be made prior to the market open on Jan. 4, 2011 to Motorola, Inc. stockholders of record as of the close of business on Dec. 21, 2010.
* Motorola, Inc. stockholders of record will receive 1 share of Motorola Mobility common stock for every 8 shares of Motorola common stock they hold.
* Immediately following the distribution of Motorola Mobility common stock to Motorola stockholders, Motorola will effect a 1-for-7 reverse stock split of Motorola common stock, which will become effective prior to the market open on Jan. 4, 2011.
In a joint statement, Greg Brown, Motorola co-CEO and CEO of Motorola Solutions, and Sanjay Jha, Motorola co-CEO and CEO of Motorola Mobility, said: “Today’s announcement marks another important milestone toward the upcoming separation that is expected to benefit Motorola, its stockholders, as well as each company’s respective customers and employees. We look forward to taking advantage of the opportunities before us as we begin the new year as two independent, publicly traded companies.”
On Jan. 4, 2011, Motorola, Inc. will change its name to Motorola Solutions, Inc. and will begin trading on the New York Stock Exchange (NYSE) under the ticker symbol MSI, and Motorola Mobility Holdings, Inc. will begin trading on the NYSE under the ticker symbol MMI.
Please refer to http://www.motorola.com/investors for additional information, including Frequently Asked Questions, regarding the spin-off of Motorola Mobility and the reverse stock split of Motorola common stock described in this release.
