Before BlackRock Became Untouchable, Carl Icahn Told Larry Fink His $4.8 Trillion Empire Was Protecting Bad CEOs— And He Had a $9 Billion Example to Prove It

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During the July 2015 CNBC Institutional Investor Delivering Alpha Conference, activist investor Carl Icahn criticized Larry Fink and BlackRock Inc. for backing corporate management over activist shareholders.

Icahn said Fink’s annual letters to CEOs were effectively a “sales pitch” for BlackRock, encouraging companies to issue debt and pursue acquisitions under the guise of long-term planning rather than addressing poor management. He argued that this approach benefited BlackRock by increasing assets under management while shielding underperforming executives from accountability.

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Using Motorola Solutions Inc. as an example, Icahn said the company had lost $9 billion in value before activists intervened. He claimed BlackRock refused to support his campaign to overhaul the company, adding, “We saved the company. Wouldn’t vote for me.”

Icahn also argued that BlackRock’s immense influence, managing about $4.8 trillion at the time, allowed it to protect entrenched management teams instead of supporting shareholder-driven reforms. “….you use it to protect these guys as long as they do what you want,” said Icahn.

While emphasizing that he respected Fink personally, Icahn said BlackRock’s voting practices were “very dangerous” for U.S. capital markets because they discouraged accountability and meaningful corporate change.

How Icahn Reshaped Motorola

Motorola’s troubles were largely driven by its failure to replicate the success of its blockbuster RAZR handset. Sales of follow-up models, including the KRZR, fell short of expectations as competitors such as Nokia Oyj and Samsung Electronics Co Ltd. gained ground, while Apple Inc.’s first iPhone reshaped the mobile industry. The company’s handset division slipped into losses, prompting investor concerns over management’s strategy.

The declining performance triggered activist investor Carl Icahn’s campaign, which called for governance changes and measures to unlock shareholder value. Icahn launched a years-long activist campaign at Motorola beginning in 2007, initially seeking a $12 billion share buyback before escalating to a proxy fight for board seats. After failing to win board representation, he intensified pressure through public letters, a lawsuit seeking access to company records, and criticism of Motorola’s leadership, while raising his stake to more than 10%.

The company eventually agreed to appoint two of his nominees and split into Motorola Mobility and Motorola Solutions in 2011. Later that year, Alphabet Inc.’s Google acquired Motorola Mobility for $12.5 billion, a deal valued at a 63% premium.

Motorola’s BlackRock Connection

BlackRock’s ties with Motorola date back to the early 2000s, when it became one of the company’s largest institutional shareholders. The relationship was purely as an investor, with BlackRock holding shares on behalf of clients and voting on corporate matters.

The connection became highly visible during Carl Icahn’s 2007–2008 activist campaign, when he accused BlackRock of supporting Motorola’s incumbent board instead of backing his proposed reforms. Following Motorola’s 2011 split, BlackRock continued to hold investments in the successor companies, including Motorola Solutions.

What’s Next for Motorola?

In June, Motorola Solutions announced its $1.5 billion acquisition of counter-drone technology firm D-Fend Solutions. The deal expands Motorola’s airspace security capabilities. D-Fend has grown its annual revenue by more than 50% over the past three years and is expected to generate $185 million in 2026 revenue. The acquisition is expected to close in the fourth quarter of 2026, subject to regulatory approvals.

Motorola Solutions is expected to report earnings on Aug. 6, 2026, with analysts forecasting EPS of $3.77 and revenue of $3 billion, up from $2.77 billion a year earlier. The stock currently trades at a P/E ratio of 32.5x, reflecting a premium valuation.

Image via Shutterstock

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Before BlackRock Became Untouchable, Carl Icahn Told Larry Fink His $4.8 Trillion Empire Was Protecting Bad CEOs— And He Had a $9 Billion Example to Prove It

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