Blackberry explores the idea of selling the company
BlackBerry Limited, a mobile communications giant, has just announced that the Company’s Board of Directors has been exploring strategies to try and “enhance value and increase scale” of its Blackberry 10 smartphone.
Among the strategies that the company has considered are either a strategic partnership, a joint venture, or the sale of the company
The Special Committee of the Board will be chaired by Timothy Dattels. After hearing the news of a Special Committee, the Chairman and CEO of Fairfax Financial, Prem Watsa, resigned from the board of directors.
However, he does not plan on selling the shares he owns in the company. Fairfax Financial currently holds the largest stake in Blackberry.
Mr. Watsa said: “I continue to be a strong supporter of the Company, the Board and Management as they move forward during this process, and Fairfax Financial has no current intention of selling its shares.”
Timothy Dattels, Chairman of BlackBerry’s Special Committee of the Board, said:
“During the past year, management and the Board have been focused on launching the BlackBerry 10 platform and BES 10, establishing a strong financial position, and evaluating the best approach to delivering long-term value for customers and shareholders. Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives.”
What is the future for Blackberry?
The President and Chief Executive Officer of BlackBerry, Thorsten Heins, believes that the company has “compelling long-term opportunities” for the new Blackberry 10.
“We have exceptional technology that customers are embracing, we have a strong balance sheet and we are pleased with the progress that has been made in our transition. As the Special Committee focuses on exploring alternatives, we will be continuing with our strategy of reducing cost, driving efficiency and accelerating the deployment of BES 10, as well as driving adoption of BlackBerry 10 smartphones, launching the multi-platform BBM social messaging service, and pursuing mobile computing opportunities by leveraging the secure and reliable BlackBerry Global Data Network.”
Despite exploring the idea of selling the company, there is no certainty as to whether Blackberry will carry out any form of transaction. Currently the company has not disclosed any further developments regarding the process.
In December 2012, Blackberry reported a 47% drop in revenue compared to the previous year.