Rebirth of England.

Chapter 777 Keep Motorola?

"As early as July this year, Motorola had already finalized their split plan. Of course, the implementation of this plan requires time, so it was decided that the formal split would be carried out in the fourth quarter of this year. All that had been done before was preparatory work..."

Ivanta has organized a team to not only conduct a detailed investigation of Motorola's situation, but also began to analyze and calculate this acquisition to determine the final bid.

In the documents submitted by Motorola to the Securities and Exchange Commission (SEC), it is mentioned that Motorola will be split into Motorola Mobility and Motorola Solutions.

Motorola Mobility will license its trademark and name to Motorola Solutions, Inc.

The two companies will enter into an agreement to define their relationship, including how employee benefits and intellectual property will be allocated, and will also enter into a commercial agreement to collaborate on specific products and services.

A Motorola executive said in an interview that the separation would be good for the company, in part because the network and enterprise mobility businesses would be freed from the historical burden of funding the struggling mobile phone business.

The two companies will have different users and investors, with Motorola Mobility focusing on consumers and Motorola Solutions focusing on the enterprise market.

The latest news on the Motorola spin-off, which will be completed by October 2010, 10.

Motorola shareholders will receive eight shares of Motorola Mobility common stock for every 1 share they own. In addition, the Board of Directors has approved a 8-for-1 reverse stock split for Motorola.

According to this plan, Motorola will officially change its name to Motorola Solutions, Inc. on Monday, October 2010, 10, and will be listed on the New York Stock Exchange with the stock code MSI.

The spun-off Motorola Mobility was also listed on the New York Stock Exchange on the same day with the stock trading code MMI.

"So if we are planning to acquire Motorola Mobility, it would be best to wait until the company is split and listed before making the acquisition. Otherwise, Motorola has already done a lot of work on the split, and it may be difficult for them to change their plans and discuss the acquisition of Motorola Mobility with us before the formal split..."

Ivanta said to Barron:

"In addition, some shareholders may have expectations for the value of Motorola Mobility after it is spun off and listed. If we acquire it now, even if we can offer a relatively good price, the other party may still think it is not as good as expected..."

What she said made sense. After all, although Motorola's situation was very bad in 2007-2008 and its mobile phone division suffered heavy losses, last year, that is, 2009, due to the launch of its Android and GOS phones, although it has not yet turned a profit, at least the amount of losses has been reduced.

According to Sanjay Jha, who is in charge of Motorola's mobile phone division, he said in an interview that he believes that Motorola's mobile device business is likely to turn a profit in the fourth quarter of this year or the first quarter of next year...

This optimistic sentiment will naturally affect some investors and shareholders' judgment on Motorola Mobility's stock price. But Baron knows that if Motorola had insisted on launching Android phones from the beginning, the situation might have improved. However, after Google launched the GOS system, Motorola turned to cooperate with Google. Not only did they reduce the research and development of Android phones, but the Droid series of phones that originally supported the Android system also turned to support the GOS system...

However, as the market share of the GOS system gradually decreases, Motorola's upcoming Droid X mobile phone is likely to fail. This phone is said to be the highlight of Motorola this year, but it is obvious that it is difficult to meet their expectations...

In this case, after Motorola Mobility is spun off and listed, the market will probably give them a cold shoulder. If they continue to negotiate with the other party about acquiring Motorola Mobility at this time and offer a certain premium, not only will the total bid be slightly lower, but it will also gain the approval of many Motorola shareholders.

"If we acquire Motorola's mobile phone division and do not sell it to the public, but instead focus on launching Android-based phones, can we save the brand?"

Ivanta thought for a moment and then asked.

Barron could tell from her expression that she had probably been thinking about this question herself...

"It's not that we can't try, but we need to know that the Motorola brand is indeed well-known, but that is in the field of traditional mobile phones. As for smart phones, for the new generation of users, Motorola does not have much advantage over Apple or even Honor Electronics' Mate phones..."

"But at least having Motorola join the Android camp will be a good thing for the Android system."

Barron nodded and said:
"If this is the case, then we need to consider that the Motorola brand should not have too close a relationship with Android. After all, Android itself needs to promote the Android system. If it has its own mobile phone brand, it will not appear so friendly to other mobile phone manufacturers, even in terms of perception."

Just like Microsoft developed the Windows operating system, they certainly can't say that they make their own computers, so how can other computer manufacturers dare to use your system? If you make some bugs in other brands' computers at the system level in order to sell your own computers, so that they crash easily, it will definitely not work.

The principle is the same. Android must be in a relatively neutral position among various mobile phone manufacturers, so that these mobile phone manufacturers can confidently launch Android phones. If Motorola and Android become one at that time, then out of a defensive mentality, some mobile phone manufacturers will not dare to bet all on the Android system, and will also leave more opportunities for the GOS system and Microsoft Windows system.

After all, apart from Apple's iOS system which is not open to the public, although the Android system has occupied most of the market share, we still cannot say that it has won for sure. Whether it is Microsoft's Windows system or Google's GOS system, there is still a chance for them to turn things around.

What's more, the scale and strength of these two companies are stronger than Android.

"At that time, IC Capital and other companies, such as the Global Industrial Investment Fund and other investors, can form a group to acquire Motorola. After transferring the assets that Android needs, including patents, the rest can be distributed..."

(End of this chapter)