California Business Minute™

Hi, I am Tim Johnson and welcome to the California Business Minute

The web is a buzz with news and rumors about Motorola moving to California upon
its splitting into two organizations, specifically the handset and set-top box
units could be moving headquarters to California.

Apparently, an article in the Wall Street Journal that interviewed Motorola’s
co-CEO Sanjay Jha, stated that Motorola is contemplating a move to the Golden
State.

Jha said in the interview that when Motorola splits in two next year, he may
transplant the handset and set top box units to Silicon Valley.  “We’ll go
where that talent is and right now that looks like California,” said Jha.

The plan includes turning the company into two publicly traded companies. One
will include the mobile devices and home businesses, and the other will include
its enterprise mobility solutions and networks businesses. Motorola’s co-CEO
and head of mobile devices Sanjay Jha will serve as CEO of the mobile devices
and home businesses, and Co-CEO Greg Brown will serve as CEO of the enterprise
group. The separation is targeted for the first quarter of next year.

Chicago has been home to Motorola’s headquarters since 1928. Headquarters are
located in Schaumburg. And the mobile devices and home business unit is located
in Libertyville. Currently, 10,000 of the company’s 53,000 worldwide employee
base are still in the Chicago area. Yet, the company’s overall headcount is now
significantly lower due to the economy. In the past year, it has shed 11,000
jobs, or about 17 percent of its workforce. Jha said it’s likely that it will
retain an office and some employees in the Chicago suburb of Libertyville, where
its mobile-handset unit is currently based.  No information was disclosed about
its operations are based in Horsham, Pennsylvania.

Business Week in an article states this makes a lot of sense: Software acts as
the biggest differentiator for cell phones and other gadgets nowadays. And much
of that developer talent resides in California. The article states that Nokia
has established a research presence in Silicon Valley in recent years and so has
smart phone software maker Symbian. Apple, Google and Palm are also based in
California. Last, but not least, Qualcomm, where Jha used to work before joining
Motorola, is headquartered in San Diego.

I am Tim Johnson and this has been the California Business Minute.