Company officials say all options are on the table when it comes to the future of Blackberry.
Blackberry shares where up this morning on news that the tech giant might be on the auction block.The Waterloo based smartphone company released a statement today saying it's exploring strategic alternatives.
Shares opened this morning at $10.78, by the end of the day, shares finished at $11.13, up almost eleven per-cent.
In an interview with BNN, money manager Michael Decter says something needs to be done after leadership took its eye off the ball for several years.
“You just can't go up against the 800 pound gorilla, Apple, and the Asian makers who Apple is struggling with.”
A new board has been created to look into the options. The special committee of the board includes Barbara Stymiest, Thorsten Heins, Richard Lynch and Bert Nordberg, and will be chaired by Timothy Dattels.
The company's single largest shareholder, Prim Watsa, has stepped down from the board.
Last week, many speculated the company could go private, which caused shares to spike.
Blackberry isn't commenting on today's events, other than issuing a company statement. In the release, chair of the special commitee, Timothy Dattels says, that during the past year, managment and the board have been focused on launching the BlackBerry 10 platform and BES 10.
“Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives.”
Thorsten Heins, President and Chief Executive Officer of BlackBerry, added, “We will be continuing with our strategy of reducing cost, driving efficiency and accelerating the deployment of BES 10, as well as driving adoption of BlackBerry 10 smartphones, launching the multi-platform BBM social messaging service, and pursuing mobile computing opportunities by leveraging the secure and reliable BlackBerry Global Data Network.”
Research in Motion was founded in Waterloo in 1984. The company has been a part of the city long before the 'Blackberry' was created 14 years later. So It is no surprise that support for Blackberry is strong in its hometown.
Blackberry Fan, Jen Vasic says, "It is our home grown product and i think a lot of our identity is wrapped up in Blackberry and is focussed in Blackberry."
