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Journalism of Courage
Canadian smartphone maker BlackBerry is looking at options that could include joint ventures,partnerships or a sale of the company as it struggles to survive against stiff competition
BlackBerry,which pioneered on-your-hip email with its first smartphones and email pagers,on Monday said it had set up a committee to review its options and that top shareholder Prem Watsa was stepping down from its board due to a possible conflict of interest.
BlackBerry,once a stock market darling,has bled market share to the likes of Apple Inc and phones using Google Incs Android operating system,and its new BlackBerry 10 smartphones have failed to gain traction with consumers.
BlackBerry shares were up 5 per cent at C$10.57 near midday on the Toronto Stock Exchange but remained well below the levels seen in June,before the company reported dismal results that included poor sales of the BlackBerry 10 phones it views as key to a successful turnaround.
Analysts expressed skepticism about the new committee,noting that Blackberry announced similar steps more than a year ago when it hired JPMorgan and RBC as financial advisers.
As well as the smartphones that bear its name,BlackBerry has a valuable collection of patents,a well-regarded service business that powers its security-focused messaging system,and cash and investments of C$3.1 billion as of late June. The company is debt-free.
BlackBerrys fate is likely to prompt questions from the Canadian government,which vets foreign takeovers of Canadian firms. In the past the government has described BlackBerry as a Canadian crown jewel.
The government said on Monday it would not comment on speculation about the company.
