The split would be into Mobile Devices and Broadband & Mobility Solutions businesses

According to the Associated Press Motorola Inc. has announced plans to separate its struggling handset business from other operations, forming two separate publicly traded companies.

The split into a mobile devices business and a broadband and mobility services business is to take place in 2009 and will take the form of a tax-free distribution.

Motorola said the handset business will operate separately from another company that will encompass its home and networks business, which sells TV set-top boxes and modems, and its enterprise mobility solutions, which sells computing and communications equipment to businesses.

Chief Executive Greg Brown said, “Our priorities have not changed with today’s announcement. We remain committed to improving the performance of our Mobile Devices business by delivering compelling products that meet the needs of customers and consumers around the world.” He added, “Our decision to separate our Mobile Devices and Broadband & Mobility Solutions businesses follows a review process undertaken by our management team and board of directors, together with independent advisors,”

The company had announced on January 31 that it was studying a possible breakup in an effort “to recapture global market leadership” in the mobile phone market and enhance shareholder value.

The Chicago-based cell phone maker has been under pressure from billionaire investor Carl Icahn for changes meant to revitalize its cell-phone business. The cell phone unit has seen its sales and stock price plummet with the company unable to produce second act to the once-popular Razr phone.

Hope that this move would bring good fortune to Motorola…..Only time will tell…