CHICAGO–Motorola announced on Wednesday that it is going to separate its struggling mobile phone manufacturing business from other operations to form two individual publicly traded companies.The Company had faced much pressure from investors’ side. Company came in to this decision after a two-month strategic review of its businesses.

The US based company had arrived at this conclusion after facing strong objection from the billionaire investor Carl Icahn,continuously for two years,who has been very much annoyed with Motorola’s declining phone sales.

Experts said that the decision will enable both the companies to improve their focus on business.The sales of Motorola gradually declined as the consumers are switching over to the Nokia and Apple,the major competitors of Motorola.The reason why Motorola lost its market is that it fails to replace its big hit,Razr model, which was once a must-have phone but has now faded from the scene.

“The major problem which the company is facing is its lack of potential to come up with new models to replace its highly successful Razr,” said Gregory Q. Brown, the chief executive of Motorola Inc.

“The separation of company as a two independent publicly traded companies provides enhanced focus on management as well as capital structure which are more necessary for the individual business needs,” said Greg Brown.”This will also help us to provide some enhanced coalition and alertness which will help us to move ahead.”

Though the details of the deal haven’t been revealed,Motorola declared that its mobile phone producing unit will operate as a separate company from another company manufacturing TV set-top boxes,modems,products used by police department for scanning and fingerprinting purposes,as well as data and video communications systems for public agencies like fire service.

It’s unclear whether one company or both will retain the brand name of Motorola and which company is going to distribute the shares to its existing shareholders.

Motorola lost its second place last year to its competitor Samsung Electronics Co.Finland based Nokia Corp. retains the No.1 position in mobile manufacturing industry.Many executives had left the company this year, and the new management team struggles to retain control.

“The challenges around Motorola have been about constant implementation,”said Mr. Brown.“Thus it has become important for us to extend and enhance our production.”

Experts have raised the question that how the company is going to attract executives as the troubled company itself faces a mass departure of employees.

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