Rebirth of England

"As early as July this year, Motorola had already determined their split plan. Of course, the implementation of this plan will take time, so it was determined that the split will be officially carried out in the fourth quarter of this year. All the previous work was preparation..."

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.

Among them, Motorola Mobility will license its trademarks and names to Motorola Solutions.

The two companies after the split will sign an agreement to determine the relationship between the two parties, including how to allocate employee benefits and intellectual property rights. The two companies will also sign a business agreement to cooperate in specific product and service areas.

A Motorola executive said in an interview that the split will be beneficial to the company's development, in part because the network and enterprise mobility businesses will be freed from historical burdens and will no longer need to provide funding for the troubled mobile phone business.

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

The latest news about the Motorola split is that the split will be completed before October 24, 2010.

Motorola shareholders will receive Motorola Mobility common stock shares at a ratio of 1:8. In addition, the board of directors also approved Motorola's 1:7 reverse stock split plan.

According to this plan, Motorola will officially change its name to Motorola Solutions on Monday, October 25, 2010, and will be listed on the New York Stock Exchange with the stock code MSI.

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

"So if we are going to acquire Motorola Mobility, it is best to wait until the company is split and listed before making the acquisition. Otherwise, on the one hand, Motorola has already done a lot of work on the split, and it is unlikely that they will be willing to change their plans and talk to us about acquiring Motorola Mobility before the formal split..." Ivanta said to Barron: "In addition, there will be some shareholders who have expectations for the value of Motorola Mobility after the split and listing. If we make the acquisition now, even if we can offer a relatively good price, the other party may still think it is not as expected..." Her words make sense. After all, although Motorola's situation was very bad in 2007-2008, and its mobile phone department suffered heavy losses, last year, with the launch of 2droid and GOS phones, although it has not turned losses into profits, at least the amount of losses has decreased. 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 Barron knew 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 phones that originally supported the Android system also turned to support the GOS system...

But as the market share of the GOS system gradually decreases, Motorola's upcoming Droid X 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 split and listed, the market may give them a cold shoulder. At this time, if they talk to the other party about acquiring Motorola Mobility and give a certain premium, not only will the total bid be slightly lower, but it will also be approved by many Motorola shareholders.

"If we get Motorola's mobile phone department and don't sell it to the public, but instead launch Android-supported mobile phones, can we save this brand?"

Ivanta thought for a moment and asked.

Baron knew 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 quite well-known, but that is in the field of traditional mobile phones. In terms of 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 letting Motorola join the Android camp will be a good thing for the Android system."

Baron 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 be so friendly to other mobile phone manufacturers, even in terms of perception."

Just like Microsoft developed the Windows operating system, they certainly cannot say that they make their own computers, so how dare other computer manufacturers use your system? If you make some bugs in other brands of computers at the system level in order to sell your own computers well, and they will freeze at any time, it will definitely not work.

The reason 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 with all their strength. If Motorola and Android become one at that time, then under the defensive mentality, it will be easy for some mobile phone manufacturers to not dare to bet all on the Android system, and it will also leave more opportunities for the GOS system and Microsoft Windows system.

After all, now, in addition to the closed-door iOS system of Apple, although the Android system has occupied the vast majority of the market share, it is still not certain to win. Whether it is Microsoft's Windows system or Google's GOS system, it is not without a chance to turn things around.

Moreover, the scale and strength of these two companies are stronger than Android.

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