Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Tech
24/7/365 Network Uptime!
Average Rating:
Rate this article:  
Uncertainty Clouds BlackBerry
Uncertainty Clouds BlackBerry's Sales Picture

By Barry Levine
September 24, 2013 11:03AM

    Bookmark and Share
Analyst Charles King said if he were an IT manager, the letter of intent might make him "more comfortable with BlackBerry because of an infusion of capital" toward which the company appears headed. He said the long-term stability of BlackBerry "could come down to whether it can be run in a profitable manner in a niche," such as Fairfax appears to want.
 



A day after BlackBerry's announcement that it was signing a letter of intent to be taken private by investors, there are questions about the impact this move could have on the company's position. Does an acquisition make current and future customers more or less skittish about buying BlackBerry products and services?

The Waterloo, Ontario-based phone maker said Monday it had agreed to a letter of intent by Canadian investment firm Fairfax Financial Holdings to purchase the company's stock for $9 per share in cash. Fairfax owns about 10 percent of BlackBerry, and is led by Prem Watsa, a former member of BlackBerry's board.

The letter is not a purchase agreement, and gives Fairfax until Nov. 4 to complete due diligence. During that period, Fairfax will more thoroughly investigate BlackBerry's situation and will seek to raise financing, while BlackBerry is free to accept other offers, although it would have to pay a fee of about $150 million to Fairfax if the handset maker breaks off negotiations.

IT Managers

A key question is whether this due diligence period is giving BlackBerry's customers and would-be customers cold feet about making or continuing to make a purchase decision in a platform that is clearly in a transitional phase.

Charles King, an analyst with industry research fund Pund-IT, told us that, if he were an IT manager, this news might make him "more comfortable with BlackBerry because of an infusion of capital" toward which the company appears headed. He also added that the long-term stability of the company "could come down to whether it can be run in a profitable manner in a niche," such as the narrower direction that Fairfax appears to be encouraging.

In a statement accompanying the announcement, for instance, Watsa said that an acquisition by his company would continue "the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions." The statement indicates a retrenching around the company's traditional business base of customers, with less or even no emphasis on the consumer market. It does not, however, specifically mention handsets.

Consumers, Other Questions

As for consumers, King said he didn't think the announcement "would have an enormous effect on consumer users," who, to the extent that they're paying attention to the news, are simply interested in knowing if the device they're purchasing is facing a near-term end of life. That doesn't appear to be the case with BlackBerry, at least not for the moment. (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Tech
1.   Cortana Fills Windows Phone Gap
2.   Galaxy S5 Phone: Less Can Be More
3.   Beware: Facebook Shares Your Locale
4.   Android Gets Chrome Remote Desktop
5.   Amazon 3D Smartphone Pics Leaked


advertisement
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.