Roundup: the latest sad tales about Research in Motion (and more sale rumours)
Research in Motion hasn’t been the topic of happy headlines in a while, but the past few days have been especially bad for the BlackBerry maker (probably even worse than this week). A summary of the most recent reasons to pity RIM:
• Oodles of BlackBerrys and PlayBook tablets sit unsold in its warehouses, not counting the inventory buildup at retailers and carriers. The stockpiles increase the chances RIM will have to write-down the value of the inventory.
• RIM will likely have to fire between 2,000 and 6,500 employees (out of 16,500 total) in the next couple of weeks as part of its restructuring .
• CEO Thorsten Heins admitted yesterday afternoon that the company is predicting an operating loss for the first quarter (it’s first in nine years), which analysts called “disastrous” for the company.
• The share price has plunged to just above $10, the lowest it’s been since 2003.
• RIM just hired J.P. Morgan and RBC Capital Markets to help them out with an ongoing strategic review, which again has pundits wondering whether the company is up for sale.
• But some analysts say nobody will want to buy RIM now that the company appears to be straight-up failing, rather than just going through a difficult transition.
• RIM’s Surging Inventory Raises Prospect of Writedown [Bloomberg]
• RIM prepares for radical measures with global restructuring [Globe and Mail]
• BlackBerry-maker RIM’s playbook: warn of operating loss, hire banks to look at options. Ouch! [Toronto Star]
• Prospects Dim for BlackBerry Maker [Wall Street Journal]
• RIM hires JPMorgan, RBC for strategic review, expects first Q1 loss in 9 years [Financial Post]