BlackBerry Board Is Considering Its Options, Including Selling the Company

Jeff Weisbein -

Trading has resumed on BBRY (BlackBerry) after being halted for a few minutes after the company announced it was entertaining the idea of selling the company or at the very least looking to enter a strategic alliance/partnership.

BlackBerry just publicly declared that it is looking to find a new backer willing to take the company on or one that is happy to partner with the handset maker under a joint venture or other strategic partnership.

BlackBerry said:

“The Company’s Board of Directors has formed a Special Committee to explore strategic alternatives to enhance value and increase scale in order to accelerate BlackBerry 10 deployment. These alternatives could include, among others, possible joint ventures, strategic partnerships or alliances, a sale of the Company or other possible transactions.”

Thorsten Heins, chief executive of BlackBerry added:

“We continue to see compelling long-term opportunities for 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.”

This isn’t surprising news, after all, it was recently rumored that BlackBerry was looking to go private as it attempts to turn itself around.  BlackBerry shares are down 17 percent on the year as well and its BlackBerry 10 operating system and new smartphones have yet to perform at the levels I’m guessing the company had hoped for by this point.

The announcement in May that BlackBerry would be bringing BBM (BlackBerry Messenger) to both iOS and Android could have been the first sign that trouble was afoot. After all, BBM is (was) one of the company’s biggest selling points for its smartphones.

A company that once dominated the mobile industry may soon cease to exist.  Of course just because the company is considering selling or partnering with another firm doesn’t mean it will actually happen.