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BlackBerry wants to be sold by November

Company reportedly looking to expedite the process after Microsoft/Nokia deal

Financial trends and news by Steven Loeb
September 5, 2013
Short URL: http://vator.tv/n/31c9

If the sale of BlackBerry happens, and there is still no guarantee that it will, it is going to happen quicker than anyone could have expected.

Less than a month after officially putting itself up for sale, the smartphone manufacturer is looking to find a buyer and complete the transaction by November, according to a report from the Wall Street Journal late Wednesday. 

In August, BlackBerry announced that it was looking at “strategic alternatives to enhance value and increase scale in order to accelerate BlackBerry 10 deployment.” The alternatives it is considering include strategic partnerships or alliances, a sale of the company, or “other possible transactions.”

Since then a special committee of board members has narrowed its list of potential bidders and is now "pushing for a quick resolution to the sales process."

Canada Pension Plan Investment Board, Bain Capital, and Chinese smartphone and computer maker Lenovo Group are among those expected to bid. Sources also said that the deal will mostl likely include multiple buyers, with each one taking over part of the company, so it is possible that all three companies could win up winning.

Part of the reason that BlackBerry is looking to speed up the sales process may have something to do with Microsoft's purchase of Nokia for $7.17 billion earlier this week.

Windows Phones have been increasing in popularity recently; in the second quarter of 2013 Windows. saw a huge increase in shipments: going from 4.9 million to 8.7 million quarter to quarter. That is an increase of 77.6%, putting it in the number three spot behind Android and iOS.

As the Wall Street Journal pointed out, the purchase of Nokia could solidify Windows' place in that spot, permently relegating BlackBerry to also-ran status.

BlackBerry has also been seeing disappointing sales of its two newest devices: the Z10 and Q10

The company sold a total of 2.7 million BB 10 OS handsets in the June quarter when many had predicted BlackBerry would sell at a good three million Z10 devices alone. But that 2.7 million figure includes both Z10 and Q10 sales. Altogether, BlackBerry’s BB 10 devices made up just 40% of its total handset sales, which means most of its sales were cheaper, older devices.

BlackBerry’s struggling sales and shrinking cash cushion has left many experts skeptical that the company would even be able to find a buyer. If the company continues to sink, its prospects would begin to fall further as well. Hence why the company wants the sale to happen as soon as possible.

VatorNews has reached out to BlackBerry for comment, but the company was unavailable at this time. 

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