Motorola (MOT) To Spin-Off Cellphone Unit . . .
No, Really
June 18th, 2010 by john | 1,169 Comments | Filed in Investing Psychology, Spin-0ff News, Spin-off Investing
Motorola, MOT, has been going to do a stock spin-off of its cell phone business for a long time. Just do an internet search on Motorola spin off and you’ll get an idea of how many sources have written about this. Sometimes it’s the “money losing cellphone unit” and sometimes it isn’t money losing in the stories, but it has always sounded at least a bit questionable from a shareholder perspective. Sure, Motorola may be stronger without its cellphone business, but if I own MOT now and they split it apart giving me both pieces, the deal is a wash.
But that’s all different now. According to Daily Finance author Dawn Kawamota, it is going to be structured so that the deal makes sense from both sides.
Sounds OK. Fortunately for me and you, these things play out at what could be described at a grand pace. Stock spin-offs are not for those with a short attention span, (at least if you have a good system of electronic alerts set up to wake you at opportune moments.)
There will be plenty of press releases, news articles, and SEC filings before you have to decide what you may want to do.
It could be a great opportunity for all involved . . . or not. We’ll see.
Tags: MOT, Motorola, stock spin-off, stock spin-off investing

