Moto to spin off chip-making
"NEW YORK (CBS.MW) -- Motorola, the maker of handsets and other wireless devices, filed a $2 billion initial public offering Wednesday for its chip-making subsidiary.
Dubbed SPS Spinco Inc., the Austin, Texas-based unit posted a loss of $400,000 on revenue of $3.5 billion in the nine months ending Sept. 27, vs. a loss of $1.8 million on revenue of $3.7 billion in the year-earlier period.
The news comes one day after Motorola (MOT: news, chart, profile) announced it has selected Ed Zander as its new chief executive. In midmorning trading on the New York Stock Exchange, shares of Motorola were down 6 cents at $13.27.
Motorola, headquartered in Schaumburg, Ill., didn't say on which market its chip unit's shares would make their debut.
Motorola plans to spin off shares of the company to its common stockholders in the form of a dividend by the end of 2004. Goldman Sachs (GS: news, chart, profile) is lead underwriter on the deal.
The filing comes on a busy day in the IPO market, with China Life, Orbitz and two other deals kicking off. See full story."
I wonder if this is good or bad for the G4? I hope the new company can stay in the market and provide some compititon for IBM. Better two ship makers than one.
Dubbed SPS Spinco Inc., the Austin, Texas-based unit posted a loss of $400,000 on revenue of $3.5 billion in the nine months ending Sept. 27, vs. a loss of $1.8 million on revenue of $3.7 billion in the year-earlier period.
The news comes one day after Motorola (MOT: news, chart, profile) announced it has selected Ed Zander as its new chief executive. In midmorning trading on the New York Stock Exchange, shares of Motorola were down 6 cents at $13.27.
Motorola, headquartered in Schaumburg, Ill., didn't say on which market its chip unit's shares would make their debut.
Motorola plans to spin off shares of the company to its common stockholders in the form of a dividend by the end of 2004. Goldman Sachs (GS: news, chart, profile) is lead underwriter on the deal.
The filing comes on a busy day in the IPO market, with China Life, Orbitz and two other deals kicking off. See full story."
I wonder if this is good or bad for the G4? I hope the new company can stay in the market and provide some compititon for IBM. Better two ship makers than one.
Comments
At least it's done. Now Apple can start with an essentially fresh management team (not Motorola's, and not Zander) and with any luck they can shore up that part of the old AIM alliance and keep it going as an informal thing.
This is very good news for SPS.