The BlackBerry used to be the darling of the mobile computing world. Once "the smartest phone in the room," these devices have become third fiddle to Samsung and Apple's more popular products. This market shift has left BlackBerry Ltd., the company that sells the eponymous phones, searching for both customers and, according to a piece published by Bloomberg, a new owner.
Recent attempts to recapture its market share have been tepid at best, as demonstrated by the lackluster welcome for the BlackBerry 10, which debuted earlier this year. The company's stock price has meandered in the lower price ranges, although in recent weeks the stock has surged nearly 15 percent on news that the company's owners had finally secured a buyer.
"BlackBerry made the decision to form a special committee and publicly announce a strategic review because it was concerned about its financial results and disappointing unit sales of the BlackBerry 10 phones," the source noted.
How these negotiations — the potential new owner has not been named — will play out remains to be seen. Bloomberg reported that the company has sought buyers since late 2011, a fact that underscores the extremely tough business climate in today's hyper-competitive tech market. Additionally, anyone looking to make a serious bid will have to accept the fact that the BlackBerry 10 will continue to underperform, especially with new Samsung and Apple phones expected in late 2013.
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Categories: Stock News