With sales stalling and its customer base shrinking, BlackBerry formally put itself up for sale on Monday, a signal the company that pioneered the smartphone market now sees its prospects as a stand-alone public company diminishing fast.
The Blackberry handset revolutionized mobile phone technology when it was introduced in 1999 but its popularity was badly dented by the launch of Apple’s iPhone in 2007. The Canadian handset maker has failed to lure consumers to buy its BlackBerry 10 devices, which were meant to reverse the fortune of the company.
Ben Wood, analyst at CCS Insight, told The Financial Times: ‘While clearly not the end of the story, BlackBerry in its current form has come to an end.’
‘BlackBerry can’t do it on its own any more – it was slow off the blocks when smartphones came out and closing the gap when Apple and Samsung have created such a formidable lead has proven impossible.’
However, stock rose last week on reports that it was mulling potential offers to take the company private.
BlackBerry announced that the board had formed a special committee ‘to explore strategic alternatives’ to boost take-up of its new technology.
‘These alternatives could include, among others, possible joint ventures, strategic partnerships or alliances, a sale of the company or other possible transactions,’ it said in a statement.
BGC Financial analyst Colin Gillis said “If BlackBerry is able to find a private buyer it would allow management to focus on a turnaround and get out of the glaring public spotlight.”
