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Motorola considers ditching cell phone biz

Company said Thursday that it's seeking alternatives that might include selling off its cell phone business.

Marguerite Reardon Former senior reporter
Marguerite Reardon started as a CNET News reporter in 2004, covering cellphone services, broadband, citywide Wi-Fi, the Net neutrality debate and the consolidation of the phone companies.
Marguerite Reardon

Razr 2
Will Motorola's Razr 2 be one of the company's last cell phones? Motorola

Motorola, the third largest cell phone maker in the world, may spin off its handset business as it tries to turn around its business, the company said Thursday.

In a statement issued after the market closed, Motorola said that it was exploring "strategic alternatives" that might include a possible separation of its mobile-device business from its other business units.

"We are exploring ways in which our mobile-devices business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value of this great franchise," said President and CEO Greg Brown.

The company said it will not discuss developments until the board has approved a transaction or until the process is otherwise completed.

Motorola has been in a downward spiral for several quarters as it has lost market share to rivals like Nokia and Samsung. The company ousted its CEO Ed Zander last year and earlier this month appointed Brown as its new CEO.

A more in-depth look at Motorola's decision to possibly spin off the handset division will be posted on CNET News.com shortly. So stay tuned. In the meantime, let us know what you think about the Motorola's possible move.