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After a two-month review of its businesses, Motorola, the telecommunications equipment maker, said on Wednesday that it would split into two separate entities, spinning off its unprofitable mobile phone unit to investors.The company hopes to complete the split by next year. Shares were up 21 cents to $9.97 in afternoon trading.
Motorola, which in recent years has been unable to capitalize on the success of its popular Razr phone, said in January that it was exploring the possibility of selling or spinning off its cellphone business as a way to make the company more profitable. Will the recent change help the share price in short-term?
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