BlackBerry Open To Licensing Deals And Other Options

BlackBerry Ltd recently signaled that a licensing deal or even an outright sale of the company was still a possibility, to please shareholders who are still reeling from the disappointing debut for its new line of smartphones.

BlackBerry Open To Licensing Deals And Other Options

Chief Executive Thorsten Heins remarked he is open to all options that create value for shareholders. Heins emphasized that the company has so far focused on the creation of value through the launch of its new devices powered by an all-new BlackBerry 10 operating system.

“This is a long-term transition for the company, but I can assure you that we’re pushing very hard,” Heins said at the company’s annual shareholder meeting. “BlackBerry will pursue every opportunity to create value for shareholders.”

BlackBerry was already seeing small signs of market-share gains in the top-end of the ultra-competitive smartphone market Heins added.

“Before you go into any strategic option, I think you have to create value. And the value of the company 15 months ago was way less than what it is today,” he said.

The shares of BlackBerry were sent higher in morning trading after Heins’ comments.

BlackBerry may well be pressed into striking such a deal, said John Goldsmith, deputy head of equities at Montrusco Bolton, which owns more than 1.5 million BlackBerry shares.

“I think they’re on a very short leash,” said Goldsmith, referring to BlackBerry’s management. “I wouldn’t be surprised if within the next two quarters there is a definitive announcement with regard to other options that this company could be looking at whether that’s putting itself for sale or some other option.”

“I can see why this guy is confident,” said Ross Healy, a portfolio manager with MacNicol & Associates, whose clients own BlackBerry shares. “He is talking about partnerships and being open to talks and I don’t think you say that unless you’ve really had a talk or two with interested parties – and that gives you some confidence.”

Comments are closed.