Motorola Margins Not That Great

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Meanwhile, Motorola has already initiated two share buyback programs. The first ended in May 2005 and cost the company $4 billion. The second, launched this summer, will likely cost the company $4.5 billion. Icahn's move presents a strategic dilemma for Motorola CEO Ed Zander, because satisfying Icahn could make it hard for Zander to execute his own vision for the company. Zander has said he wants to keep a good portion of the company's cash in the bank and use some of it to buy smaller companies that can help Motorola broaden its product portfolio and reach into new markets. The company has already been on a shopping spree, announcing 10 new purchases in 2006, including the $4.9 billion purchase of the mobile enterprise equipment supplier Symbol Technologies.