RIM considers sale of BlackBerry devices division

RIM considers sale of BlackBerry devices division

Research In Motion (RIM) is looking at selling its BlackBerry devices division and its BlackBerry network, according to a report in the Sunday Times.

RIM took on JPMorgan Chase and RBC Capital Markets in May to explore its options as the company’s share price continued to plummet.

The report claims options being looked at by the banks include breaking off the handset division into a separate listed company or selling it to a rival

Potential buyers include Amazon and Facebook, which is looking at developing its own smartphone.

Another option is to sell a stake in the company to a software company such as Microsoft.

The company’s turnaround strategy, which is being led by CEO Thorsten Heins, is expected to be revealed by the autumn. Heins who took over from co-founders Mike Lazaridis and Jim Balsillie in January.

Jaguar Financial, a large investor in the company, has made clear it wants RIM to sell the handset division and its patent portfolio, leaving RIM with its BlackBerry network, which it could license to rivals such as Apple and Google.

RIM’s shares have fallen from a high of C$148 to C$10.12 at the end of last week, with more than C$72bn wiped off the stock market value.

RIM said in a statement that it continued to believe the best way to drive shareholder value was to execute its turnaround plan.

Written by Mobile Today
Mobile Today

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