Motorola CEO takes direct control over money-losing handset division

Just a few weeks after Motorola Inc. (NYSE: MOT) released disastrous fourth quarter results, the telecom company's new CEO Greg Brown has taken direct control of the company's wireless handset division. Apparently, Brown is not ready to cede defeat to Samsung Electronics, which wrestled the "world's second largest" wireless phone maker spot away from Motorola in 2007.

Even as Brown apparently rolls up his sleeves and tries to fix what's wrong with the wireless giant's handset division, the company is still being rumored for a breakup to unlock shareholder value. With Motorola shares sitting at under $12, the pressure will be on for that to happen sooner than later. With Carl Icahn still yelling for Motorola blood, 2008 will be an interesting year for the Illinois wireless behemoth.

Brown will replace Stu Reed, who took operating responsibility over Motorola's wireless handset division last July. Reed will remain with Motorola, but the company was not clear on his responsibilities. With Motorola's handset division producing half of the company's revenue, Brown will now have the job of trying to either get it back to prominence in the global handset market or prime it for a sale should a breakup of the company happen.