Motorola plans to split into two companies next year amid pressure from billionaire investor Carl Icahn to break off the money-losing mobile-phone business that it pioneered 25 years ago.

One company will focus on handsets and the other will sell network equipment, cable TV set-top boxes and two-way radios–businesses that are profitable and growing faster. The board is looking for a new chief executive officer for the phone business, Motorola said in a statement.