Update: Engadget has posted an insider's letter detailing just how badly Motorola has been mismanaged. Must read. Boy oh Boy, things look bad -- A split didn't work out so well for Palm, it might not work out so well for Motorola. Is this company screwed?

Looks like Carl Icahn has had his way - Motorola switched from dipping their foot in the spin-off waters to diving in completely. They're splitting in two - one company for handsets, another for enterprise services and the like. No word yet on what the two companies will be named - one hopes that the Moto brand, complete with vowels, will continue to be applied to their handsets.

They are also looking for somebody to head up their handset business -- so polish up that resume, because the way things have been going at Motorola lately, anybody could head up that company and do a better job than ZNDR (Erm, Ed Zander), the guy who pretty much ran them into the ground before the new CEO, Greg Brown, started cleaning house with a broom in one hand while fending off Carl Icahn's “activism” with a epee in the other.

Motorola, Inc. (NYSE: MOT) today announced that the Company’s Board of Directors has commenced a process to create two independent, publicly-traded companies. Today’s decision follows the Company’s January 31, 2008 announced evaluation of the structural and strategic realignment of its businesses and represents affirmative steps to position its Mobile Devices and Broadband & Mobility Solutions businesses for success, while creating value for all Motorola shareholders.
- press release

Ah well, at least we have the Motorola Q10 to look forward to.