Further Deathwatch: RIM/BlackBerry to write down $1bn
RIM, cack-handed overlords of BlackBerry, is probably going write down a whopping $1bn which will invariably end in a number of job cuts. They're in tatters aren't they?
And yesterday, RIM called in bankers JP Morgan and the Royal Bank of Canada to conduct a strategic review which also suspending any trading in their shares. These problems are mounting against a backdrop of being hammered by, basically, better phones on the market as well as the failure of the PlayBook, and a series of blunders that saw people unable to use their phones.
In a statement, Thorsten Heins, the company’s president and CEO, said that there would be "headcount reductions in some areas" but added that "we will continue to spend and hire in key areas such as those associated with the launch of BlackBerry 10, and those tied to the growth of our application developer community." Heins added that the company's performance would "continue to be challenging for the next few quarters."
Ehud Gelblum at Morgan Stanley, said: "Bankers do a lot more than buy and sell, certainly finding a buyer is one the things they do, but in this case it would be an option of last resort. [RIM] will be a much, much smaller company. They have to bring down the cost structure in a hurry so they don't get to the point that they go bankrupt until they have a new product. Is there a pot of gold at the end of the rainbow? The odds are definitely against them."
Meanwhile, the Reaper awaits.