Apps & Software, Business, Mobile, Small Businesses, Startups, Tech

Blackberry, a lesson for the Business Analysts and Asset Management


Blackberry, the former big telco company in the smartphone industry that brings about changes in the social aspect of the mobile platform and crave its own domain such that makes it a very unique and as well maintain its customer’s ID’s all the while. Despite the long standing in the industry, there comes a time in business where changes comes and if a business is not fully prepared and ready for such time. I guess, such business is bound to face what Blackberry as a company is facing currently.

In recent time the business in the technology industries has witnessed changes which cannot just be left unattended to, the whole experience starts from the day Blackberry shift his base from Canada to America, and also the name Blackberry which used to be a name-brand under the company name Research In Motion (RIM), and from the business angle to it, the company experienced a blackout which cause all it client/customer across the world experienced the blackout simply because the server serving them all is located in Canada and it experience is blackout.

To the business on the ground, after the launch of the platform on the other OS (i.e. iPhones and Android), and the two big body experience the high demand which requires a deep investment into server and backup, which gives a sense into looking into the financial needs and technical angle to it managements too.

            

If you recall this debut which is long rumoured and later come to reality, and for the fact that, there is a testing period where the apps is leaked and the suspension at a later period. The smartphone business has gone beyond sitting down and forecasting, which I believe is the basic reason while Blackberry has to take this step which most business and analyst might refers to as giant step. But lately last month Blackberry accept the acquisition offer from fairfax, where Fairfax is a big shareholder in the blackberry portfolio and this has brought some many skepticism which leads to this current issues where Blackberry has to go into several talks with Cisco Systems, Google and SAP, and the sales this time around is either part or all, this is now left to the who will be the giant to bear the cost and make the right bid as several sources close to the company foreseen. “It is unclear which parties will bid, if any. But the potential technology buyers have been especially interested in BlackBerry’s secure server network and patent portfolio, although doubts about the assets’ value remain an issue, the sources said”.

As the companies involved were the bigboy in the industries and global brand, Google, Intel, Cisco and even SAP decline to make any comment as of now with regards to proper caution, Samsung, the OEM which is well-known and rumoured to have be the first on the tale of buying over blackberry was not around to give comment as well. Due to the current financial standing and equity around the smartphone company, whoever bidden will be taken risk on a large order as the money to be invested will rather make or mar the business, and the worth of the franchise ranging from $3billion and above. According to analysts, BlackBerry’s assets include a shrinking yet well-regarded services business that powers its security-focused messaging system, worth $3 billion to $4.5 billion; a collection of patents that could be worth $2 billion to $3 billion; and $3.1 billion in cash and investments.

Of all this a private equity firm has also showed interest in the firm, Cerberus Capital Management has also requested and advise that the company provide additional financial details about other segment of the company’s business, these which might last for another several weeks since they two company speaks different language and it might take the capital management to find his route in the industry while blackberry would prefer the company is sold to peer technology company than to another whole entire different body. This further shows that so many things might be involve in this kind of situation since blackberry don’t just want the business go down the drain just like that despite the sales and considering the years of technical support and hard work invested in the building of the company.


Five member committee was actually setup to look into the bid and all that surrounds it, and the committee was held by the Board Director Timothy Dattels. While other members of the committee includes Chairman Barbara Stymiest, Chief Executive Thorsten Heins, Richard Lynch and Bert Nordberg. In an email make available by the spokesman for Blackberry to Reuters which thus read – “The special committee, with the assistance of BlackBerry’s independent financial and legal advisors, is conducting a robust and thorough review of strategic alternatives.” He declined to provide further comment”

Blackberry as a company on itself is been advise by JP Morgan Chase & Co alongside RBC Capital Market, while the committee setup is been advised by Perella Weinberg. A deep analysis lesson to learn from this, businesses and capital analysts needs to further consider several things while running a technical and Technology Company and I really believe this is same for other sophisticated business empire.

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