Motorola’s (NYSE: MOT) shares were halted. Then the company announced what many on Wall St. had expected. Its board will look at whether not the company should exit the cell phone business. The firm’s share of global handset sales has dropped from about 22% to 12% in two years. Rivals Nokia (NYSE: NOK), Samsung, and Sony Ericsson have systematically stripped MOT of its customers.
Samsung and Sony Ericsson would be likely buyers.
Earlier in the month, 24/7 Wall St. noted that Motorola might not make it through the year intact. Now it looks like that prediction may come true soon.
In its announcement, the company said it is exploring the structural and strategic realignment of its businesses to better equip its Mobile Devices business to recapture global market leadership and to enhance shareholder value. The company’s alternatives may include the separation of Mobile Devices from its other businesses in order to permit each business to grow and better serve its customers.
In other words, the board and management admitted defeat.
Douglas A. McIntyre
Some of the other companies we have noted, with full explanations in the link, are Sears Holdings (NASDAQ: SHLD), Citigroup, (NYSE: C), Yahoo! (NASDAQ: YHOO), Advanced Micro Devices (NYSE: AMD), Ford (NYSE: F), Sprint Nextel (NYSE: S), and Qwest Communications (NYSE: Q).
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
