00:00A company that was once worth $96 billion is now worth just $3 billion.
00:04And that's exactly what we're going to talk about today.
00:06The Rise and Fall of Motorola
00:08Motorola was one of the most important companies in the U.S. back then.
00:11They were competing with giants like IBM, Apple and HP.
00:15But despite being a giant themselves, they didn't even last two decades
00:18and are now a shadow of their former selves.
00:20So how did this happen?
00:22Well, it starts with the story of two brothers.
00:24Their names were Paul and Joseph Galvin.
00:26They grew up in a working-class neighborhood and worked at their father's restaurant,
00:29washing dishes.
00:30But the brothers weren't interested in washing dishes for the rest of their lives.
00:34So when they grew up, they decided to start their own business.
00:37And their first product was a radio kit that was sold under the brand name of Motorola.
00:41This was during World War II and demand for radios was through the roof.
00:44You see, back then, if you wanted to listen to the radio,
00:47you needed a separate receiver, 4 a.m. and one for f.m.
00:51The brothers thought this was stupid
00:52and decided to develop a radio that could pick up both signals.
00:56They called it the Handy Talkie, and it became an instant hit.
00:58In fact, it got so popular that they couldn't keep up with demand.
01:02And as a result, the company had to move from a garage operation to a factory in Chicago.
01:07They also expanded their product line to include car radios,
01:10walkie-talkies for police officers,
01:12two-way radios for taxi services,
01:14CB radios, and even marine radios.
01:17And the growth didn't stop there.
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