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. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Advertisement
Free Gartner Report:
Drive innovation & collaboration
with the "Everyone's IT" approach.

View the research report
Mobile Tech
Gartner's #1 for endpoint backup
Average Rating:
Rate this article:  
RIM Ex-CEO Cashed Out Ahead of BB10 Launch

RIM Ex-CEO Cashed Out Ahead of BB10 Launch
By Jennifer LeClaire

Share
Share on Facebook Share on Twitter Share on Linkedin Share on Google Plus

Although former co-CEOs Jim Balsillie, pictured, and Mike Lazaridis recommended a succession plan that ultimately led to them handing over the reins, there could be some ill will involved as many believe it was more of a forced exit than a willing succession. An SEC filing shows Balsillie unloaded all his RIM stock at the end of 2012.
 


With the corporate rebranding, the new mobile operating system and new devices coming to market, all eyes are on BlackBerry. But one of the company's largest shareholders decided it was time to cash out.

Jim Balsillie, the former co-CEO and a significant shareholder in the struggling mobile device company, decided to sell all his stock at the end of 2012. Balsillie sold off 26.8 million shares in what was then Research In Motion.

The stock sale was revealed in an SEC filing this week and occurred just about a month before BlackBerry unveiled the new BB10 mobile operating system and Z10 keyboard-less handset. Depending on exactly when Balsillie sold his shares, he could have collected between $167 million and $396 million, according to a report in The Guardian.

Not a BlackBerry Indictment

The timing seems odd to those who are holding out hope that the new look and feel will revitalize the troubled company. Kevin Restivo, an analyst with IDC, tweeted that any time a single shareholder with over 5 percent of the float dumps everything, fellow investors should care. He continued, "A cynic might say Jim Balsillie's dumping of BlackBerry stock around product launch time is a big middle finger to his ex-colleagues."

Although former co-CEOs Balsillie and Mike Lazaridis recommended a succession plan that ultimately led to them handing over the reins, there could be some ill will involved as many believe it was more of a forced exit than a willing succession.

As part of the succession plan, Lazaridis stepped into the role of vice chairman of RIM's board and chairman of the board's Innovation Committee. Balsillie remained on the board for a period, but has since exited. Lazaridis remains on the board.

Michael Disabato, managing vice president of network and telecom at Gartner, told us he understands why Balsillie is cashing out now -- he has no influence on the direction BlackBerry takes. But what does this say about Balsillie's confidence in the new product operating system and hardware?

"I don't think this is an indictment against BB10. I think it's a logical approach," Disabato said. "There was a huge announcement coming out and a transient view that BlackBerry is doing something good and that the stock price would rise. My guess is he tried to ride that rise up and sell at what he thought was the peak to maximize his return."

Room for BB10?

BlackBerry's decision to postpone the release of BB10 to 2013 left the platform vulnerable in 2012 and reliant primarily on older smartphones running on BB7, according to a recent IDC report.

As a result, IDC said, BlackBerry's tight grip on enterprise users has loosened and its popularity within emerging markets has been diminished by the competition. Now that BlackBerry has unveiled BB10, the firm continued, the company is faced with migrating current BlackBerry users to upgrade while persuading smartphone users of other platforms, including previous BlackBerry users, to switch.

"With the recent introductions of two new smartphone platforms we expect some ground to be made by the new entrants over the coming years," said Ryan Reith, program manager for IDC's Mobile Device Tracker suite. "There is no question the road ahead is uphill for both Microsoft and BlackBerry, but history shows us consumers are open to change. Platform diversity is something not only the consumers have asked for, but also the operators."
 

Tell Us What You Think
Comment:

Name:



AdvertisementToday's CIO needs to adopt an "Everyone's IT" approach to leadership, embracing technology to increase enterprise agility & collaboration. View the free Gartner research report to learn how to adapt your IT leadership style to today's business standards.


 Mobile Tech
1.   Screen Troubles Briefly Slow iPhone 6
2.   Bounty Offered for Oculus Rift Bugs
3.   Glass Adds Voice Access to Contacts
4.   Samsung, B&N Partner on Nook Tablet
5.   Acer Desktop Box Rides Chrome Wave


advertisement
HTC One M8 Windows Phone Unveiled
Can be POS device for small business.
Average Rating:
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Researchers Find Malicious Android Apps Can Hack Gmail
A new study shows that a weakness in the Android mobile operating system can be used to steal sensitive, personal info from unwitting users. Gmail proved to be the easiest app to attack; Amazon, the hardest.
 
UPS Stores in 24 States Hit by Data Breach
Big Brown has been breached. UPS said that about 105,000 customer transactions at 51 of its UPS Store locations in 24 states could have been compromised between January and August.
 
Cost of Target Data Breach: $148 Million Plus Loss of Trust
The now infamous Target data breach is still costing the company -- and its shareholders -- plenty. In fact, the retailing giant forecast the December 2013 incident cost shareholders $148 million.
 

Enterprise Hardware Spotlight
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
 
Three New Lenovo PCs Aimed at Business Users
With businesses wanting computing solutions that do more for less money, Lenovo has unveiled three new desktop PCs that it says offer solid computing at a budget-minded price.
 

Mobile Technology Spotlight
Screen Shortage Briefly Puts Brakes on iPhone 6
RAM? Check. Antenna switch? Check. Screen? Oops. Parts suppliers for Apple have found themselves facing a shortage of screens for the new iPhone 6 as next month's release date for the new smartphone looms.
 
Bounty Offered to Coders for Oculus Rift Bugs
Coders who find bugs in software for the Oculus Rift VR immersive headset could receive a reward of at least $500 under Facebook's White Hat bounty program. Facebook acquired Oculus in March.
 
Google Glass Adds Voice Access to Phone Contacts
The latest update to Google Glass will let users access their top 20 phone contacts with voice commands alone. A user can then choose a phone call, Google hangouts, e-mail or text messaging.
 

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 | CRM Systems | 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

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.