Maker of smartphone Blackberry happens to be exploring the options regarding its business that could see company as being sold off.
One board member of Blackberry, Timothy Dattels, would head one new committee which will consider the different models of business, including partnerships.
The sales of model Blackberry 10 are hoped to be high by Blackberry, seen crucial for future of company.Mr Dattels said that they believed this is the right time for exploring the strategic alternatives.
He 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.”
Chairman, Prem Watsa, of largest shareholder of Blackberry, Fairfax Financial, did resign from board as formation of committee got announced. According to Mr Watsa, he did want to avoid the potential conflict in interest.
He said that he continued being strong supporter of company, management and board as they did move forward in this process. He also said that Fairfax Financial didn’t have any current intention regarding sale of its shares.
The technology firm of research IDC’s Francisco Jeronimo said that it was surprising to witness some statement like that made publically. He said everyone knew that they were struggling and also looking towards their options and it was clear that they’ve not been capable of finding anyone who wanted to form or buy any partnership.
“Blackberry has very strong assets and is one of the most recognised portfolios in the industry. The question now is how much they’re asking and what’s on offer.”
The shares in company rose around more than five percent as news of committee formation did emerge.
Company dropped the name Research in Motion during January 2013. It also did rebrand as Blackberry for coinciding with launch of the model Blackberry 10.In its very recent quarter, the company lost exactly $84m and it also expects losing more money during 3 months to end of this September.