BlackBerry’s ‘white knight’ falls short
1 min read
When investment company Fairfax Financial Holdings came riding to BlackBerry's rescue a few weeks ago, it seemed too good to be true. At the time, I noted 'it's not a done deal' and that turned out to be the case; Fairfax hasn't been able to raise the cash – reported at the time to be $4.7billion – although it says it will buy $250million worth of the $1bn in bonds being offered by the ailing company.
One of the other reasons for saying it wasn't a done deal was because BlackBerry's management had hoped for interest from other companies. That didn't happen, despite rumours of talks with the likes of Google and Facebook.
If consumers don't want to buy its handsets – which is apparently the case – and the industry doesn't want to buy it – where does BlackBerry go next?
Even if it raises the $1bn for which it is looking, how will it suddenly find a lucrative niche in the market that might turn things around? The chief executive has been ritually fired and there are rumours that Jim Balsillie and Mike Laziridis might be looking to get their hands on the company they founded.
Companies in other sectors might be able to apply some of the traditional 'cures' recommended by management consultants and the like. Companies in the handset business don't have that luxury; as I've said in other blogs, if you snooze, you lose.
The new ceo will have his hands full and little time in which to weave some magic. If he can't, expect a 'fire sale' in the near future.
