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Motorola Reportedly In Strategy Change

Motorola is moving to break in two its division that makes set-top boxes and wireless-networking gear, a change to its strategy, a report says.

SCHAUMBURG, Ill. (

TheStreet

) --

Motorola

(MOT)

is moving to break in two its division that makes set-top boxes and wireless-networking gear, a report says.

Motorola has signaled it will continue an auction for its wireless-networking businesses, and spin off its set-top box business with its core handset business into a new, publicly traded company, the

Wall Street Journal

reports, citing people familiar with the matter.

it was previously thought the company would sell off the set-top box and wireless-networking gear business, the largest of Motorola's divisions.

If the plan is enacted, Motorola's sales would fall to around $7 billion from about $22 billion in 2009, the

TST Recommends

Journal

reports. What would remain is a business that sells equipment for public-radio systems and bar-code scanners, the

Journal

adds.

A decision by Motorola has yet to be finalized, the

Journal

says.

-- Written by Joseph Woelfel in New York.

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