Struggling cell phone and telecommunications equipment maker Motorola Inc. said late Thursday that it is considering a restructuring to help boost the performance of its cell phone business that could include a spinoff of the unit.

The announcement follows a full year of turmoil for Schaumburg, Ill.-based Motorola, which in 2007 became the subject of a proxy battle by activist shareholder Carl Icahn who attempted to win a seat on the company's board and maintained that a dramatic shakeup was required to reverse the loss of cell phone market share.

Although Icahn was defeated in his efforts, Motorola's problems worsened throughout the year, culminating with the resignation in November of CEO Ed Zander and a warning earlier this month that it would post a first quarter operating loss due to persistent weakness in its cell phone division.

That latest financial warning stunned investors and analysts alike, many who said they had underestimated the magnitude of Motorola's troubles.

Prior to the announcement on Thursday, Motorola's stock closed at $11.50 per share, down from a 52-week high of $19.98.

Motorola said it did not plan to report developments on its search for strategic alternatives until a definitive transaction had been approved.

"We are exploring ways in which our mobile devices business can accelerate its recovery and retain and attract talent while enabling our shareholders to realize the value," Greg Brown, Motorola's new CEO, said in a statement.

At the core of Motorola's problems is its failure to hit another home run to follow its Razr phone, which was once very popular but ultimately succumbed to over exposure. Although Motorola is often regarded simply as a cell phone maker, it has extensive operations outside of this business -- including equipment to enable mobile communications and broadband connections -- and has actively grown those businesses through acquisitions.

In the wake of the company's dismal first quarter forecast earlier this month, some analysts such as Oppenheimer & Co.'s Ittai Kidron said a separation of the cell phone business seemed almost inevitable.