Motorola is planning to combine and spinning off the set-top box part of its home and networks mobility division along with its mobile devices division. The company is planning further to move away, shifting its home and networks division, and then to combine the set-top box portion with its handset division into a new, publicly traded company. These both units, combining contribute $11 billion in sales in 2009; better say half of the company's total sales.

Further, the company is moving ahead with the auction of the networking equipment gear unit. The decision was taken in a board meeting of the company held in January.

Motorola feels that combining the handset division with the set-top box unit shall make it an outstanding and unique brand amongst the many in the market, with a belief of delivering the content on multiple sources.

Motorola co-CEO has reiterated the spin off matter with its handset division, once the market improves and the revival of the handset unit returns to profitability.

In the fourth-quarter earnings conference call, he affirmed that the handset unit will be profitable by the fourth quarter of 2010. As in the fourth quarter of previous year, Motorola's handset business suffered in terms of sales, despite the introduction high-end Android devices such as the Droid and Cliq. Handset sales were $1.8 billion, slithering down by 22 percent from $2.35 billion in the fourth quarter of 2008. Motorola has put a hold on its plans of selling its home and networks business, and re-evaluate its plans.