Motorola to hive off into 2 companies on Jan 4

NEW YORK: Motorola says its plan to split into two companies will be effective on Jan. 4, finalizing the breakup of one of the founders of the U.S. electronics industry.

Schaumburg, Ill.-based Motorola Inc. is splitting its consumer-oriented side, which makes cell phones and cable set-top boxes, from the side that sells police radios and barcode scanners to government and corporate customers.

Shareholders of record on Dec. 21 will receive shares in both the consumer business, Motorola Mobility, and the professional side, Motorola Solutions.

The breakup is motivated by the desire to present two simple stories to investors, rather than one complicated one.