Motorola to officially split into 2 companies

As Schaumburg-based Motorola Inc. enters the history books, two new companies will debut Tuesday on the New York Stock Exchange — Motorola Solutions Inc. and Motorola Mobility Inc. Executives will ring the bell to start trading and ring in a new era worldwide.

But how the breakup of one of the world's most recognizable brands will impact the Chicago and suburban economy is still unknown, especially as those two companies continue to evolve.

Suburban officials remained optimistic. After all, they've already been through some tough years as Motorola downsized from 150,000 to about 53,000 workers. But they acknowledge the Motorola footprint in the suburbs might change, especially as Mobility considers a permanent headquarters that might not be in Libertyville.

While the Solutions work force is expected to be headquartered in Schaumburg, Motorola's 350-acre campus “might be too large for what's left after the separation,” said Schaumburg Mayor Al Larson. “We've had on-and-off discussions over the years about that property and what we'd liked to see there.” Discussions have focused on a mixed-use development with high-end retail, hotels and residences, he said.

Thoughts of cutting up that lushly landscaped campus never entered anyone's mind during Motorola's heydays leading up to the early 2000s. That's when Motorola workers contributed to economic growth in the suburbs. Employees moved here, ate here, paid taxes and helped build community pride and worldwide recognition.

But the last decade saw the legendary Motorola's mobile phone business founder. Motorola closed down its brand-new Harvard campus and sold its assets in the Arlington Heights campus, where Nokia Siemens is expected to take over soon.

Motorola's problems led to a corporate board struggle that planted the seed about three years ago for the breakup, instigated by billionaire activist and investor Carl Icahn, who then bought up Motorola shares and wanted control of the board. Icahn was not immediately available for comment on Monday.

During that power play, a sale of the phone business was discussed, but profits were diving. Then CEO Ed Zander was replaced by Greg Brown.

In 2008, Sanjay Jha was tapped as a co-CEO with the mission of separating the companies into two publicly traded entities. But the recession hit and a likely sale faded. Then a plan to split up the companies in 2009 was postponed.

In the meantime, Jha and his team created more consumer friendly phones with the Android platform and eventually returned to profitability. Jha and Brown also worked on dividing the work force, worldwide operations, assets and intellectual property.

Last year, the company announced the official split, new company names and the target date of Jan. 4. Two separate web sites for the companies also will debut today.

Throughout Motorola's storied history, the recurring theme has been one of reinvention, said Motorola spokeswoman Jennifer Erickson.

“The separation is another chapter in Motorola's evolution and we are proud to have reached this milestone and look forward to building on our global leadership positions across all of our businesses as we separate into two independent companies,” Erickson said.

While the old company was a strong community supporter and longtime employer, the new companies intend to be the same, she said.

“Motorola has a tremendous positive impact — attracting top talent and providing extensive job opportunities, and supporting the local community through a significant corporate philanthropic program,” Erickson said. “Motorola also provides substantial tax revenues and supports and attracts other subsidiary businesses.”

With the Solutions work force in Schaumburg, Mobility will retain workers in Libertyville and Horsham, Penn., Erickson said.

Whether Libertyville will be considered Mobility's headquarters is still uncertain, since other locations in California and Texas are under consideration. Jha still has a home in San Diego.

Libertyville Mayor Terry Weppler is optimistic that Motorola's campus will remain, since the company recently received a variance to install a new antenna.

“Hopefully, since they're spending money to improve the facility, they intend to stay,” Weppler said.

History of Motorola

<b>1928:</b> Galvin Manufacturing Corp. founded in Chicago, producing a battery eliminator, which allowed battery-powered radios to run on household electricity.

<b>1930s:</b> First Motorola brand car radios sold to police departments and municipalities. First police cruiser radio receiver, home entertainment radios and first two-way radio.

<b>1940s:</b> Launches research-and-development program. Introduces personal sports radio so people can hear commercial radio broadcasts. First commercial two-way radio system. First FM portable two-way radio. First public stock offering. First car radiotelephone with services from Illinois Bell. First TV. Company name changes to Motorola Inc.

<b>1950s: </b>Opens operations in Toronto, Canada and Zurich, Switzerland. Establishes Motorola Foundation. Introduces the bat wing style “M” insignia. First commercial high-power transistors. First pager. First pay-TV system. Introduces Explorer satellite radio. Robert W. Galvin succeeds his father Paul V. Galvin as president.

<b>1960s:</b> First transistorized, cordless portable TV. Introduces transistorized two-way radio and rectangular color TV tube. Launches automotive 8-track tape players. Introduces Quasar color TV. Radio transponder relayed first words from the moon to earth in July 1969 with Apollo 11. Robert W. Galvin becomes chairman and CEO.

<b>1970s: </b>Launches mobile data radio system, Introduces DynaTac portable cell system. Sells TV business, including Quasar. Provides transponders used on the 1975 Apollo-Soyuz “handshake in space” docking mission. Moves global headquarters from Chicago to Schaumburg.

<b>1980s:</b> Debuts first computerized engine control. first portable cell phone called DynaTac phone. First cellular system. First 32-bit microprocessor. William J. Weisz becomes CEO, followed by George M.C. Fisher.

<b>1990s: </b>Debuts digital high-definition TV standards. First GSM cell system in Germany. First digital two-way radio. Debuts interactive CableComm system for home cable subscribers. Introduces iDEN digital radio, first two-way pager and telematcis systems. First StarTAC “wearable” cell phone. Gary L. Tooker becomes CEO, followed by Christopher B. Galvin.

<b>2000s:</b> First emergency wireless data, high-speed system. First 3G nationwide network. First wireless cable modem gateway, Spins off Freescale Semiconductor. Introduces Razr ultrathin mobile phone. Edward J. Zander becomes CEO, followed by Gregory Q. Brown. In 2008, company begins work to split into two publicly traded companies. Sanjay K. Jha becomes co-CEO.

<b>2011:</b> Jan. 4 brings official split of Motorola into Motorola Solutions Inc. and Motorola Mobility Inc.

Source: Company