BlackBerry Tries to Sell Itself to Save Company

BlackBerry has created a special committee that was tasked to find some strategic alternatives to save the phone maker. It has indicated that selling itself will be one of the possibilities it is willing to explore. The committee will review the possibility of joint ventures and partnerships as well.

No matter what the choice of the committee will be, BlackBerry’s priority is to quicken the development of its new software, known as BlackBerry 10. According to the company, its management and the Board have focused on the launch of BlackBerry 10 platform and BES 10. The company is looking for the best approach to give long term value for customers and shareholders.

Director Timothy Dattels will head the special committee. He said that the time is right to explore strategic alternatives as the company possesses the technology to do so. After the announcement was made, BlackBerry shares increased 6.7 percent to $10.51 in pre-market trading.

The decision to come up with a new escape route came five years after BlackBerry phones conceded its industry leading position to Google’s Android smartphones and Apple’s iPhone. Earlier this year, the company changed its named from Research in Motion to BlackBerry to restyle the company. Its shares dropped 93 percent in the past five years. The company suffered losses worth $646 million in 2012, compared to $3.5 billion profits two years ago.

The new name was not the only thing that the company tried in order to save itself. The two founders of BlackBerry left their position in the company. Mike Lazridis and Jim Balsillie, who shared the CEO position, gave it to Thorsten Heins last year. Lazridis and Balsillie then stepped down as directors as well.

Heins managed to orchestrate a rally in BlackBerry shares with the hype generated by the BlackBerry 10 operating system. But it was quashed by the lackluster reviews of the company’s new phones.