Motorola Inc. disclosed its plans to split into two companies. The separation of the business will take place in the first quarter of 2011. This move of separation of the business is taken by the biggest US cell phone maker to separate its cell phone and television set-top box businesses from the rest of the company.

Each of the two separated companies would be independent and publicly traded. According to Motorola officials the separation would provide the businesses flexibility to grow in the long term.

As per the new separation plan one of the two separated companies will reportedly focus on mobile devices and home devices while the other one will comprise its corporate business and wireless network equipment business. The two companies will reportedly account for half of Motorola's current sales each.

"The board of directors supports the planned separation of Motorola into two industry-leading public companies. We believe this structure provides significant operational and strategic flexibility for both the companies positions them for future success and enhances long-term shareholder value," Motorola Board Chairman David Dorman said.

Sanjay Jha, co-CEO of Motorola, will reportedly run Motorola's phone and set-top box and Fellow co-CEO Greg Brown will run the company's networking and business mobility divisions.