Blackberry's Ship Sinks: Privatization Deal Fails, CEO Resigns
11/5/2013 by: Anshel Sag
This has not been a good week for Blackberry, first, the global market share numbers come out and they show Android and Windows phone eating up marketshare from both Blackberry and Apple. Those numbers show that Blackberry is shrinking at a rapid pace and is struggling to keep up with the much hotter Android, iOS, and Windows Phone.
Then, there were rumors that Fairfax Financial Holdings was having a hard time getting enough money to actually make the deal go through. There were rumors that they didn't have the money on hand to make the deal happen and that it would fall through, and then it did. And as a result of the deal falling through, Blackberry is now back to square one in terms of ownership and being a business entity that loses millions of dollars per quarter. Now, since this entire privatization deal had gone south, the CEO also resigned from his position, effective in two weeks.
With those two announcements, Blackbery's stock [NASDAQ:BBRY] absolutely tanked, taking a 16% hit in a single day of trading. Sure, some companies can recover from such sharp drops in share price, but the problem is that Blackberry has been on a downward trend since the end of June. Since June 26th, Blackberry's stock is down over 55%, that makes for a lot of pretty angry investors and people asking, why? In the span of 5 months, the company has lost over 50% of it's share value, that's pretty damn significant and a pretty good reason why the 'new' CEO left.
Personally, I think Blackberry dropped off a long time ago when they refused to acknowledge the importance of the consumer device and progress. They simply believed they could continue to stamp out the same product with incremental improvements and that their customers would continue to buy them. The problem was that Blackberry did not account for Android or iOS to give them real competition, unlike Windows Phone back in the day. Right now, Blackberry's best case scenario is to be bought up by a company like HP, Dell or Samsung in the hopes that their enterprise products continue to live, somewhere. Otherwise, the company will be parted off and sold for IP and assets and that will be the end of Blackberry as we know it.
Blackberry, BBRY, BB10, Black Berry, Smartphone, Tablet, Stock, CEO, Thorsten Heins, Restructure, Android, iOS, Windows Phone
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