Moto’s new co-CEO validates spin-off strategy
Motorola appoints former Qualcomm COO as CEO of mobile devices
Lack of leadership for Motorola’s Mobile Devices unit has been one of many potential nails in the manufacturer’s coffin this year, leading many analysts to question whether spinning off this business makes the most sense. Today’s announcement of the company’s new co-CEOs may seem like an odd move, but according to at least one analysis, the appointment of Dr. Sanjay Jha, Qualcomm’s former chief operating officer, as co-CEO of Motorola and CEO of the company’s Mobile Devices division is a much needed step in the right direction.
“I’m pleased with the person they have,” said Matt Thornton, telecommunications equipment analyst at Avian Securities. “It’s better than my expectations. The timing removes another overhang. The longer you have a lack of leadership, that weighs on morale and your ability to retain talent and recruit new talent. Sooner was better than later, and the person they got was a great candidate. It has to be viewed as a positive announcement.”
Creating a more fine-tuned operating and capital structure will be Jha’s best bet in offsetting the reverse synergies inherent in the split, Thornton said. Motorola shares more than 150 facilities between its two units, which has been another reason many analysts have questioned the financial logic behind a spin-off. Thornton pointed out that the company would not have been able to attract this caliber of leader if it wasn’t planning to break in two. Jha, who has served as Qualcomm COO since late 2006, is often credited with leading Qualcomm’s transformation into a global leader in the mobile phone chip market. As COO, he was responsible for Qualcomm’s corporate research and development efforts as well as serving as president of its CDMA chipset and software division. His appointment caused Moto’s stock to rise the most it has in more than four years.
Two years ago, following the success of Moto RAZR, the company captured 24% market share. Today, while still the number three handset vendor, Moto’s market share is down to 9.2%. Jha will take the reins of the Mobile Device segment as CEO as well as run the company alongside Greg Brown, who will retain CEO status for the Broadband Mobility Solutions group – made up of the Home and Networks Mobility (HNM) and Enterprise Mobility Solutions (EMS) segments. The two co-CEOs will lead the company over the next 12 months in preparation for the Mobile Device spin off next year.
Want to use this article? Click here for options!
© 2013 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now