Friday, June 18, 2010

Motorola to Pump Cash Into Cellphone Spinoff - WSJ.com

To live or die by the Droid…

Motorola Inc. is planning to funnel billions of dollars to its money-losing cellphone business when it splits off into a separate company next year.

Under a structure now taking shape, Motorola is planning to buy back most of its debt and give the bulk of its remaining cash—roughly $3 billion to $4 billion—to a new company centered on the cellphone unit, according to people familiar with the matter.

The Schaumburg, Ill., company would also free the cellphone company of pension liabilities and most other obligations, highlighting how hard the Motorola board is pushing to ensure the viability of the business.

Motorola to Pump Cash Into Cellphone Spinoff - WSJ.com

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