BlackBerry considering going private

BlackBerry is once again in the news, this time informing Reuters that the company would not be too averse to turning private.

An anonymous source told the news organization that the company's board of directors were beginning to entertain the idea that the company might be better off privatized and taking its workings out of the public eye in a manner like Dell plans to. The focus on its failing share price may have been a catalyst to this as several news organisations reported on this especially after the Q2 financial results announcements.

The Board may have felt that they were a distraction, and as such may have discussed retreating from the market in order to focus on new product launches and marketing. This would theoretically give the troubled company more leeway in what it can or cannot do. 

However, as of now the move to being a privately owned company as opposed to being a publicly traded one is still not concrete for a variety of reasons. For one, the company has not displayed any definite intentions of being bought out as of this moment and the current low share price and lack of profits may deter any interested buyers. 

Previously known as RIM, the former technology giant has not been able to rebound from market share losses due to Android, iOS and Windows Phone. Its one year hiatus to develop its current modern software (BlackBerry 10) did not help matters as the company continued to hemorrhage both market share and mindshare. To make matters worse, the company did not exactly set the smartphone world on fire upon the release of BB 10 with most retailers reporting mediocre sales.

On the flipside however, the company has seen a breakthrough of sorts as it's BlackBerry 10 phones and PlayBook tablet were approved for use by the Pentagon and endorsed as a mobile computing platform which "offers a rich, highly responsive mobile computing experience, along with BlackBerry’s proven and validated security model".

Small victories aside, such a drastic change might allow the company to remain relevant for a while till its next product releases. However, it is likely that in the event of another product flop, the company may perform another drastic reorganization as well as an evaluation of corporate strategies. If that happens, talks of privatisation might go from an "if" to a "when".

Source: Reuters | Image via CrackBerry

Report a problem with article
Previous Story

Xbox SmartGlass for Windows Phone updated with 720p support

Next Story

Apple developers receive free one month extension

22 Comments

Commenting is disabled on this article.

Might be good for them... but watch the people that are out to make money swoop in and toy with the process. Dell wants to go private and look what they are going through. Where there is money to be made...

Considering they're the first smartphone OS cleared for use on private DoD networks, I think they'll continue to make money.

Private, government contractor.

I've heard it before.

I wonder if Blackberry has ever considered making a tablet with a keyboard ala the Surface? Their Playbook was terrible for the most part but the keyboard is their biggest strength.

Maybe. Another cool idea would have been to allow QWERTY smart phones to Bluetooth sync with the Playbook and use the smart phone's keyboard. Say what you want about the old school Blackberry devices, they where the best handheld typing experience I have ever had.

blackberry... good phones... rubbish OS... you could make some really popular dumb phones and smart phones... on android... just accept it ... blackberry OS is dead if you pull out of public stocks you will burn

The OS is a little unpolished in areas but it is pretty solid overall. The real place that Blackberry is at is where apple was when they pulled Jobs back in. Everybody loves a comeback and Canada seems like a pretty patriotic country in all my visitations so I think they at least that market they always have a good shot with. It really is the hardware that's the problem. They are the most personality void devices on the market and no matter what they do they will not sell if you never stand a chance of catching anyone's eye. That's the real problem. The most boring device people will purchase is an iPhone and that thing is way lamer to look at than the iPhone.

Now not being a publicly traded company gives you a lot more maneuvering room to change things that stockholders might balk at. Being private is probably essential if they are going to turn it around because they have to make big changes and that almost always makes the stock markets freak out.

Edited by blackjezuz, Aug 10 2013, 5:28pm :

blackjezuz said,
The OS is a little unpolished in areas but it is pretty solid overall. The real place that Blackberry is at is where apple was when they pulled Jobs back in. Everybody loves a comeback and Canada seems like a pretty patriotic country in all my visitations so I think they at least that market they always have a good shot with. It really is the hardware that's the problem. They are the most personality void devices on the market and no matter what they do they will not sell if you never stand a chance of catching anyone's eye. That's the real problem. The most boring device people will purchase is an iPhone and that thing is way lamer to look at than the iPhone.

Now not being a publicly traded company gives you a lot more maneuvering room to change things that stockholders might balk at. Being private is probably essential if they are going to turn it around because they have to make big changes and that almost always makes the stock markets freak out.

actually you have made some very good points... that have changed my view...maybe they can be saved if they stop making the general run around car of the phone world... people want a sports car to extend their penis ... hmm yes maybe they can turn this around with an overhaul ... but it needs to be one thats so drastic its a game changer but still able to keep their own image ...

Yea, they only pull in a measly 11 billion in revenue. It's only down if you compared against their peak in 2011. Revenue now is the same as the 2009 level. Of course stockholders want unending growth no matter how many bad decisions are required so going private might be a huge competitive advantage.

that means nothing... developers hate it... developers are leaving ... the phones are only good for those who cant use them... their playbook? failed with fire... if they do not make something developers want to use they have lost the game.