Will 2008 Be the Year of the Spin-Off?
We have only just edged into 2008, yet some very interesting and newsworthy events have already emerged. Last week, Motorola indicated that it is considering spinning off its mobile handset business — a “come and get it” signal to investors. At the same time, rumors continue to circulate that Qualcomm will split up its licensing and chipset businesses. And, Sprint continues to mull the spin-off of Xohm, its WiMAX operation. What drives a company to these extreme measures and what outcomes do they prompt?