The Future of BlackBerry (POLL)

(courtesy of onlinegadgetstore.com)
(courtesy of onlinegadgetstore.com)

Earlier this morning I was reading an article about the recent BlackBerry earnings call and started to wonder – what would happen if John Chen’s plans (below) all delivered on time and the stock was in the $20 – $25 range about 1 year from now?

If a suitor approached the entire Board of Directors (not just JC) offering a premium on the stock price (say $40/share) should they sell?

[polldaddy poll=8143007]

Rob

kayaker co-pilot Tucson, it's a dry heat!

  • The board’s duty is to the shareholders. It seems to me, if they believe BB will be profitable for years to come, and I believe that is the case, they would not have an obligation to sell. I think if anything happens like this, it would be hostile and there would be a public offer made. And then the board would issue a statement to the shareholders and maybe start looking for a friendly investor(s).

    Personally, I am very excited about BB’s prospects. We have hit bottom and are on the way back to profitability via QNX, BES and BBM, and eventually, will be taking market share from Apple and Android in the developed markets in premium handsets. It’s an exciting time!

    • razrrob

      Profitability is just one factor James but I have to agree. The Board ultimately answers to the stockholders and if the Board can’t agree on a price the buyer goes directly to the stockholders and now it’s Hostile. A good case is the recent Pfizer bid to take over AstraZeneca. Typically when you get to a 40% premium there is some movement. Bottom line, I’d have to agree with Chen, $100 a share or go pound sand, cos the buyer is just going to break up the company.

      On this point I’d have to agree with Gordon Gekko – Greed is good

  • Canuckvoip

    Dave the diehard says… NEVER!!!

    • razrrob

      We have a winner!

      The prize is ‘A Years subscription to The Jelly of the Month Club’

      Now can you name the movie reference?

  • ray689

    I wouldn’t have a problem with this assuming the company stays intact and continues to grow and develop new technology.

    • razrrob

      I agree keeping things intact is in the best interest of the company, but the true value of BlackBerry are the patents it owns (Intellectual Property or IP). Selling the IP is what most likely would happen much to the detriment of everyone involved, except the buyer

  • Brad

    You’re missing my choice on that survey, which is a HELL NO!

    Following up on what James said, even if offered a premium, I think there is still a lot of value for BlackBerry beyond any premium which would be offered at this point. Apple has peaked, we see the hacks and issues they are facing, and they’re not responding with anything worthy. Android is so scattered, they’re having to rebuild, and I don’t think they have it in them to rebuild with quality. I think BlackBerry is in a great position with this OS to be a leader again. They have a quality product, an amazing product, which just needs to gain traction, and the failures of the market leaders, are going to help push BlackBerry to new heights.

    • What Brad said!

    • razrrob

      Couldn’t agree more Brad! One of the 4 pillars are handset sales. I don’t care if they are Enterprise or Consumer as long as this pillar holds up the others should deliver and continue our long-term relationship with this kick-ass company!

    • web99

      Definitely no sale!

  • xBURK

    Razrrob, Holy work you put into this. Extremely impressive! Thank you for all the links.

  • razrrob

    Hey xBURK,

    thx, luckily there were a few from the same source (earning call) which made it easier

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