|[2:00 PM] Apple's PowerPC Producer Plans 3 For 1 Stock Split
Motorola has announced that the company's Board of Directors has authorized a 3 for 1 stock split. The measure, which must be approved by shareholders before becoming official, comes as Motorola trades above the 170 mark. Motorola is Apple's primary supplier of PowerPC chips. The other supplier, IBM, is only now ramping up production after exiting Apple's processor business last year. IBM is acting as a contractor for Motorola in the current processor production deal. According to Motorola:
The Board of Directors of Motorola, Inc. today approved a 3-for-1 common stock split in the form of a stock dividend, subject to approval by stockholders of an increase in the number of the company's authorized common shares.
If Motorola stockholders approve an increase in Motorola's authorized shares of common stock from 1.4 billion to 4.2 billion at their Annual Meeting on May 1, the stock dividend will be distributed on June 1, 2000 to holders of common stock of record on May 15, 2000.
As of this writing, Motorola's stock is trading at 171 7/16, up 12 15/16. Motorola's market cap is US$104.4 billion.
The Mac Observer Spin: Motorola is an enormously large corporation with different divisions competing in a number of different markets. Apple's PowerPC business is a relatively small percentage of the company's overall revenue. Embedded applications are much more of a target for the company's PowerPC business. That said, Apple is not an inconsequential partner with the company, and it is good to see them performing well.