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General Magic to Spin Off Computer Unit

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Bloomberg News

General Magic Inc., which makes voice-recognition software, said it will spin off its DataRover hand-held computer division into an independent company to focus on its Portico service. General Magic will retain a “significant minority interest” in the new, privately held company, which will be called DataRover Mobile Systems Inc. General Magic declined to disclose the size of its stake, or what percentage of its revenue came from DataRover. The transaction will be completed within a week, a company spokeswoman said. General Magic wants to focus on its Portico service, which lets users access voicemail, e-mail, digital address books and other data via the phone or Internet. General Magic is betting the service, which targets business travelers who want to retrieve information on computer and phone networks using voice commands, will jump-start the company’s growth. DataRover will be based in Sunnyvale, where General Magic has its headquarters. Shares were unchanged at $5.81 on Nasdaq.

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