RIM Revved on Icahn Rumor
10:00 AM -- Some investors in BlackBerry got terribly excited on Tuesday over a rumor that activist investor Carl Icahn had taken a stake in the company. Shares of the Canadian BlackBerry maker were up more than 4 percent on the Nasdaq exchange on the speculation, according to Bloomberg's report.
The news follows recent calls for radical changes in the company from certain disgruntled investors. (See Investor to RIM: Sell Something.)
It's not clear whether Icahn has actually taken a stake in the company or not, but the surge in RIM's share price over the mere possibility shows just how impatient some investors have become. (See RIM's Q2 Profit Falls on Weak Shipments, OS Watch: RIM Rushes a Recovery and RIM LTE Phones Expected Early Next Year.)
But does RIM really need Icahn as a catalyst for change? Following RIM's disappointing second-quarter results -- with a more than 50 percent drop in profit year-on-year and missed targets for smartphone and tablet shipments -- what magic could Icahn produce from up his sleeve for the company? — Michelle Donegan, European Editor, Light Reading Mobile