14 DAY TRIAL // Today, Canadian mobile phone maker BlackBerry Limited has confirmed plans to explore new strategic alternatives to increase the value of BlackBerry 10, including a possible sale of the company.
According to the handset vendor, its Board of Directors has already formed a Special Committee that would look into these possibilities, which include joint ventures, strategic partnerships or alliances, and other transactions.
The aforementioned Special Committee of the Board includes Barbara Stymiest, Thorsten Heins, Richard Lynch and Bert Nordberg, while having Timothy Dattels as its chairman.
The company also said that JP Morgan Securities LLC is the financial advisor for BlackBerry, and that Skadden, Arps, Slate, Meagher & Flom LLP and Torys LLP are serving as legal advisors.
Furthermore, the mobile phone maker has announced that Prem Watsa, chairman and CEO of Fairfax Financial, the largest BlackBerry shareholder, announced his resignation, so as to avoid potential conflicts that may arise during the process.
"I continue to be a strong supporter of the Company, the Board and Management as they move forward during this process, and Fairfax Financial has no current intention of selling its shares," Prem Watsa said.
According to BlackBerry, the process that it has just kicked off might not result in a transaction. Furthermore, the company won’t unveil more details on the matter, until the Board of Directors approves a specific transaction or decides otherwise.
“During the past year, management and the Board have been focused on launching the BlackBerry 10 platform and BES 10, establishing a strong financial position, and evaluating the best approach to delivering long-term value for customers and shareholders,” said Timothy Dattels, chairman of BlackBerry’s Special Committee of the Board.
“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, expressed his confidence in the opportunities that BlackBerry 10 has on the market on the long term, and also praised the technologies that BlackBerry users can enjoy.
“We have a strong balance sheet and we are pleased with the progress that has been made in our transition,” Thorsten Heins also said.
“As the Special Committee focuses on exploring alternatives, 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.”