Motorola (MOT) will give the bulk of its net cash – in the $3 billion to $4 billion range – to its money losing cell phone business when the unit is spun off into a separate company next year, the Wall Street Journal reports, according to a story attributed to “people familiar with the matter.”
The story says the company is planning to buy back most of its debt and then give most of the remaining cash to the phone unit, which has lost about $5 billion over the past three years. The business would be renamed Motorola Mobility. The rest of the company – which makes public safety radios, hand-held scanners and various telecom gear – will be renamed Motorola Solutions.
MOT today is down 4 cents, at $7.15.
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