Troubled smartphone maker BlackBerry open to going private: Sources

Aug 09 2013, 14:49 IST
Comments 0
BlackBerry open to going private BlackBerry open to going private
SummaryBlackBerry Ltd is warming up to become private, as the smartphone maker battles to revive its fortunes.

BlackBerry Ltd is warming up to the possibility of going private, as the smartphone maker battles to revive its fortunes, several sources familiar with the situation said. Chief Executive Thorsten Heins and the company's board is increasingly coming around to the idea that taking BlackBerry private would give them breathing room to fix its problems out of the public eye, the sources said.

Also read: BlackBerry: In defence of the keypad master

"There is a change of tone on the board," one of the sources said on Thursday. No deal is imminent, however, and BlackBerry has not launched any kind of a sale process, the sources said. Even if it tried, BlackBerry could find it hard to come up with a buyer and the funding to go private. With the company still posting losses and bleeding subscribers, private equity firms and other buyers may not want to step up.

Also read: BlackBerry strikes back

The company's shares have fallen more than 19 percent this year. Its market value has fallen to $4.8 billion, from $84 billion at its peak in 2008. BlackBerry, which had been pinning its hopes for a turnaround on its new line of BlackBerry 10 devices, declined to comment. The sources declined to be named because these discussions are private.

Also read: Blackberry Q5: Good phone, easy on pocket

BlackBerry's openness to consider a deal marks a radical shift in thinking at the once high-flying smartphone maker. Until recently, BlackBerry, formerly known as Research in Motion and a pioneer in providing secured emails on handheld devices, had been bent on staying independent, betting its turnaround on its latest smartphones.

Last month, Heins said the company was on the right track and just needed more time to fix its problems. He said the company will unveil more devices that run on the BlackBerry 10 operating system over the next eight months. The company has also been looking at options such as licensing its BlackBerry 10 software and other partnerships.

Waterloo, Ontario-based BlackBerry has recently had discussions with private equity firm Silver Lake Partners about potential collaboration in enterprise computing, one of the sources said. Silver Lake is caught in a bruising $25 billion battle to take Dell Inc private. Should it succeed in the Dell buyout, one possibility could be for it to collaborate with BlackBerry in mobile computing, where the PC maker has struggled to gain

Single Page Format
Ads by Google

More from Companies

Reader´s Comments
| Post a Comment
Please Wait while comments are loading...