The company warns of a Q1 operating loss and hires bankers to explore its options, which suggests a sale might be on the table

Sarah Thomas, Director, Women in Comms

May 29, 2012

1 Min Read
RIM to Sell the BlackBerry Farm?

Following reports of another restructuring and round of layoffs, BlackBerry has issued a statement warning that its first quarter looks bleak and that it has hired bankers to "explore its options." (See Report: RIM to Cut 2,000 More Jobs .)

RIM CEO Thorsten Heins halted trading of the company's stock just after the market closed Tuesday to announce that he expects a first-quarter operating loss as RIM's competitors and "highly competitive pricing dynamics" continue hurting sales at BlackBerry maker. Financial performance at the company will continue to suffer for the next few quarters, he said. Layoffs and spending reductions are afoot, but Heins added that RIM at least expects to increase its cash position from the $2.1 billion it had at the end of fiscal 2012.

Heins also revealed that RIM has been working with RBC Capital Markets and JP Morgan to help it evaluate its next steps, which could include a partnership for the BlackBerry platform, licensing it or "strategic business model alternatives." (See RIP RIM: Will Foresight Be 20/20?)

RIM didn't elaborate, but many suggest the most likely alternative is an outright sale of the brand, a possibility Heins hasn't ruled out in the past.

The news caused RIM shares to slide another 13 percent in after-market trading Tuesday to $9.77 per share. They've already fallen nearly 80 percent over the past year.

— Sarah Reedy, Senior Reporter, Light Reading Mobile

About the Author(s)

Sarah Thomas

Director, Women in Comms

Sarah Thomas's love affair with communications began in 2003 when she bought her first cellphone, a pink RAZR, which she duly "bedazzled" with the help of superglue and her dad.

She joined the editorial staff at Light Reading in 2010 and has been covering mobile technologies ever since. Sarah got her start covering telecom in 2007 at Telephony, later Connected Planet, may it rest in peace. Her non-telecom work experience includes a brief foray into public relations at Fleishman-Hillard (her cussin' upset the clients) and a hodge-podge of internships, including spells at Ingram's (Kansas City's business magazine), American Spa magazine (where she was Chief Hot-Tub Correspondent), and the tweens' quiz bible, QuizFest, in NYC.

As Editorial Operations Director, a role she took on in January 2015, Sarah is responsible for the day-to-day management of the non-news content elements on Light Reading.

Sarah received her Bachelor's in Journalism from the University of Missouri-Columbia. She lives in Chicago with her 3DTV, her iPad and a drawer full of smartphone cords.

Away from the world of telecom journalism, Sarah likes to dabble in monster truck racing, becoming part of Team Bigfoot in 2009.

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