Blackberry Share price

Ailing fortunes for Blackberry maker RIM

The fortunes of the Blackberry brand and it’s owner, Research in Motion, have been struggling over recent years in response to increased levels of competition from rival smartphone makers, such as Samsung, Apple, LG et al. Thus far, efforts to revitalise the brand, through new models such as then Z10 have failed, with a flagging share price and a consistently reducing market share, resulting in repeat and widespread losses on the basis of reduced revenue and rising development costs. Furthermore, the brand is also now suffering from a depleted image, being seen as unfashionable and firmly unpopular compared to fresh new devices such as the iPhone 5 and Samsung Galaxy iterations.

As such, the company’s market capitalisation has decreased to just over $6 billion, with a share price of approximately $11.00 at the time of writing ( September 2013 ). Help appears to be on the way, however, with a reported buyout from the largest shareholder in the troubled company, Fairfax financial holdings LTD, which holds a 10 % stake in the business. 

One can assume that the takeover is a serious proposition , as the chairman of Fairfax resigning from the Blackberry board in order to avoid any possible recriminations arising from a potential conflict of interest. Further details provided below courtesy of the Guardian :

“BlackBerry's biggest shareholder has approached several large Canadian investment funds about forging a deal to take the smartphone maker private, but the proposal is still "an airy-fairy, 'what if' kind of thing," according to a source with direct knowledge of the situation.
The shareholder, Fairfax Financial Holdings Ltd, has a 10% stake, and its chairman and chief executive, Prem Watsa, has left BlackBerry's board already to avoid any possible conflict of interest as the company assesses its strategic options.
The source, who declined to be identified because the still-preliminary talks are private, said that in addition to Watsa's Fairfax there had been an early and informal approach about a possible deal from another investor.
The person declined to name the second party.
"There have been various calls saying 'if we came up with some kind of a proposal would you look at it?'," the source said.
Fairfax did not respond to a request for comment, and Waterloo, Ontario-based BlackBerry said it does not comment on speculation.
BlackBerry, which has bled market share to rivals including Apple's iPhone and phones using Google's Android technology, said last month it was weighing its options, which could include an outright sale.
BlackBerry shares rose more than 6% on Monday after Britain's Sunday Times newspaper said Watsa was closing in on a rescue deal for BlackBerry, with support from Canada's influential pension funds.
The big funds, including Canada Pension Plan Investment Board and Ontario Teachers' Pension Plan, declined to comment.
BlackBerry shares closed at $11.53 on the Nasdaq, up from $10.84 at the close on Friday, giving the company a market capitalization of just over $6bn.
The source said any deal would likely involve more than one of Canada's powerful pension funds, which would have to weigh the possible benefits of helping a fallen Canadian icon with the risks of getting involved in such a deal.
If a concrete proposal was on the table - something that is not yet the case - things would likely "go quiet" while investors looked at their options, the source said.

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