updated 05:08 am EDT, Fri August 9, 2013
Going private to provide company 'breathing room' to correct itself
BlackBerry could potentially become a privately-operated company, with executives seriously thinking about the idea, according to reports. Chief Executive Thorsten Heins, along with the rest of the board, is said to be warming up to the prospect, which would allow the company "breathing room to fix its problems out of the public eye."
Sources of Reuters claim there is "a change of tone on the board" following the latest underwhelming financial quarter, which saw the company revealed it had shipped just 2.7 million BlackBerry 10 OS smartphones and made a loss of $84 million on $3.1 billion in revenues. The value of shares in BlackBerry has dropped more than 19 percent this year alone, with the total market value now down to $4.8 billion from a considerably higher peak of $84 billion in 2008.
It is said that, while the board are considering the option, it has yet to start any sale process, and would also have trouble finding a buyer to go private in the first place.
At the last quarterly results conference call, the company revealed it was planning more mass layoffs on top of the 5,000 let go in the previous fiscal year, with the first casualties being 250 employees in its Waterloo product testing facility.