SCHAUMBURG, Illinois (
is in the spotlight after activist investor
, underlining the compay's growth potential.
The purchase takes Icahn's stake in Motorola to 10.4%, according to
The Wall Street Journal
, and highlights the company's momentum in the fiercely competitive smartphone space. Icahn's move comes at a time when Motorola is undergoing a major metamorphosis designed to boost its smartphone sales.
Motorola is in the process of splitting into two companies -- one for networking equipment, the other for mobile phones and TV set-top boxes. Last month, the gearmaker also announced a deal to
for $1.2 billion.
Despite intense competition, Motorola's phone business is already enjoying success. The company
and recently launched the
, the Droid 2 offers twice the speed and memory of the original Droid phone and is already being cited as a
for Motorola and its investors.
Motorola is also preparing to
later this year to challenge
popular iPhone 4.
Analyst firm NPD Group recently reported that
as the most popular U.S. smartphone operating system, thanks partly to Motorola.
Motorola shares crept up 2 cents, or 0.27%, to $7.52 in Friday trading, mirroring the modest advance in tech stocks that saw the Nasdaq gain 0.38%.
--Written by James Rogers in New York.
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