Motorola splits business into three parts

Motorola is dividing up its home and networks division as a possible precursor to selling off parts of the business.

The company will post its quarterly results on Thursday and update markets on plans to improve profitability. This could include selling the handset division, which has struggled in recent quarters.

The home and networks and mobility division are to be split into three parts. First there will be a set-top box, digital video and modem business. Traditional wireless network equipment - aimed at operators - will make up the second part.

The third section will deal with next-generation network products like WiMax which are still producing relatively little revenue, Reuters reports.

The business makes a profit, on turnover of $2.4bn, unlike Moto's struggling handset division.

The company began splitting itself in two in March and will issue new shares to reflect the change in 2009. ®