Motorola considers ditching mobile phone biz

Will Motorola's Razr 2 be one of the company's last mobile phones?

Motorola, the third largest mobile phone maker in the world, may spin off its handset business as it tries to turn around its business, the company said Thursday.

In a statement issued after the market closed, Motorola said that it was exploring "strategic alternatives" that might include a possible separation of its mobile-device business from its other business units.

"We are exploring ways in which our mobile-devices business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value of this great franchise," said President and CEO Greg Brown.

The company said it will not discuss developments until the board has approved a transaction or until the process is otherwise completed.

Motorola has been in a downward spiral for several quarters as it has lost market share to rivals like Nokia and Samsung. The company ousted its CEO Ed Zander last year and earlier this month appointed Brown as its new CEO.