Motorola aims to split into two companies in the first quarter of 2011, one to focus on mobile devices and television set-top boxes, and the other on networks and enterprise mobility. Sanjay Jha, co-chief executive officer of Motorola, will serve as chief executive officer of Motorola’s Mobile Devices and Home businesses effective immediately. Meanwhile Greg Brown, fellow co-chief executive officer, will head up Motorola’s Enterprise Mobility Solutions and Networks businesses, also effective immediately. Motorola said the move will take effect through a tax-free stock dividend of shares in the new company. Its enterprise and network equipment business will be the entity responsible for Motorola’s current public debt and will be capitalised to achieve an investment grade rating, it said. Both companies will use the Motorola brand. Additional details including the capital structure of the companies will be announced later.

The move ends months of speculation surrounding the company’s fate. Motorola had previously said it would split its handset unit from its other divisions, but executives also reportedly looked at other alternatives. Reuters notes that Motorola had tried to sell its networking division but a source familiar with the matter recently said the process had slowed down. Motorola shares rose 2.3 percent to US$6.80 in extended trading last night after the latest news.