Report: BlackBerry May Consider Going Private

Posted Aug 11, 2013

According to sources with Reuters, BlackBerry may decide to go private.  Thorsten Heins, the CEO of BlackBerry, believes that this would give the company more breathing room to fix their problems without pressure from the public.  BlackBerry has not launched a sales process yet though and the company would have a hard time finding a buyer.

BlackBerry’s share price has fallen over 19% this year.  The company is also losing money and subscribers fast.  The company’s market value is now at $4.8 billion, which is down from $84 billion in 2008.  BlackBerry quickly lost smartphone market-share due to the success of Android and the iPhone.

This strategy contradicts the company’s position several months ago.  BlackBerry was pinning a lot of hope on the launch of the BlackBerry 10 operating system.  Another option for BlackBerry is to license the BlackBerry 10 operating system.

Offers to take BlackBerry private will be scrutinized by the Ottawa government for competitive and national security reasons.