BlackBerry Might Go Private in Order to Stay Afloat

BlackBerry is presently in discussions regarding the “exploration of strategic alternatives,” according to a press release from the company. This news comes after the company fell short of promoting BlackBerry 10 devices and BES 10 software adoption. One option the company is juggling with is to go private.

The chairman of BlackBerry's Special Committee of the Board, Timothy Dattles, said in the press release: “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.”

According to partners, it may be time that the company thinks about ways that it will survive, rather than grow.

Florence, South Carolina-based HillSouth is a solution provider, whose founder and CEO, Robby Hill, said: “BlackBerry has a lot of great intellectual property. Unfortunately, [intellectual property] seems to be the company's greatest asset right now, because it certainly isn't customer demand.”

Tenet Computer Group is a Toronto-based solution provider and BlackBerry partner; the company’s director of Sales and Strategic Alliances, Rick Jordan, noted that he has faith in BlackBerry’s products, but regardless of the outcome, his company is prepared to respond to customer demand.

Jordan said: “The most important thing to run mobility in a large enterprise or government is security. The BlackBerry10 is just that; the server has always been full encryption – it’s one solution, one product. Everything is managed. The only problem is you have a lot of people fluctuating out there with Apple and Android.”

Furthermore, Jordan commented that it is likely that the BYOD trend will become very popular, particularly as companies allow for more flexibility for employees with regard to the choice of a mobile device; Apple and Android devices are the best-used consumer and enterprise devices, and have impeded on the marketplace space which BlackBerry once dominated.

Smartphone maker BlackBerry, formerly known as Research in Motion, reported an $84 million loss on handsets at the end of Q1 this fiscal year. Four million subscribers were also lost, and they did not turn a profit for the quarter. In the last year, a number of layoffs at executive and middle management levels were also announced.

Jordan said: “It's a big ship and it's going to take a long time to turn the ship around. It's going to take patience.” Both he and Hill commented that a joint venture with or acquisition of the company will determine its partner ecosystem. Jordan added: “We have to remember, the U.S. and Canadian government will both have a say in potential buyers.”

Hill stated: “They need some fresh ideas and views into the company. I would hope they would find, if not a buyer, a strategic partner to expand their customer base. We can only hope that buyer will be channel-friendly.”

There was no comment from BlackBerry. (CY) Link