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Motorola to shed chip business
Cellular phone maker plans IPO, says semiconductor industry cycle seems to be in an upswing.
October 6, 2003: 8:26 AM EDT

NEW YORK (CNN/Money) - Motorola Inc. plans to separate its semiconductor operations to form a new, publicly traded company, the world's No. 2 cellular phone maker said Monday.

Motorola (MOT: Research, Estimates) said it was planning an initial public offering of shares in the new company, after which it will offer stock to current shareholders of Motorola. The Schaumburg, Ill.-based company said the move would allow it to focus its on communications and integrated electronic systems businesses, including cell phones.

The move would leave the company to focus on its cell phone services and software, radio communications and information services, automotive electronics, and cable and broadband devices and technology businesses.

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"The semiconductor industry cycle appears to be in an upswing; therefore, Motorola believes the time is right to take these actions," the company said in a statement.

As its own publicly traded company, the new semiconductor business will be able to pursue acquisitions of other product lines and technology, rather than relying on Motorola for expansion, according to a company statement.

An IPO would be subject to shareholder and regulator approval.

Shares of Motorola fell 27 cents Friday to close at $12.28.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.