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

<<   <   Page 2 / 2
joset01 12/5/2012 | 5:31:29 PM
re: RIM to Sell the BlackBerry Farm?

Hip is a relative term here. Significantly hipper than a Canadian device maker? Why yes. Hipper than Pinterest? Well, no. Ha.

jepovic 12/5/2012 | 5:31:07 PM
re: RIM to Sell the BlackBerry Farm?

No surprises there. Remember Myspace? Yahoo Messenger?

Here, iPhone is being denounced by teens as "for old people" according to market research. Think it doesn't matter because the teens don't have any money? Think again. If the 17-yo think it's uncool now, the 27-yo will think so in a year (ie now), and soon enough Apple could be back to the religious core fans.&nbsp;

Personally I think it's impossible to stay hip for a long time. The hipper the brand, the shorter the life span. Microsoft was never hip...

macster 12/5/2012 | 5:31:07 PM
re: RIM to Sell the BlackBerry Farm?

Is Facebook losing its 'coolness' and 'hip-ness'. See:


Interesting article. Reminds me of what my niece said, "Godpa, you're on Facebook. Daddy is on Facebook. So embarassing".

<<   <   Page 2 / 2
Sign In