RIM recently hired an outside law firm ahead of possible restructuring in the wake of ongoing declining sales
It’s no secret that RIM is faltering as it continues to lose marketshare to Apple and a slew of Android manufacturers. Indeed, many believe that RIM’s demise is ultimately just a matter of time as the Canadian-based company has yet to figure out a viable and successful answer to the iPhone.
When RIM announced its earnings last month, it also dropped the news that former co-CEO Jim Balsillie had resigned from the company’s board of directors. And earnings wise, things weren’t so cheery. RIM did generate $4.2 billion in revenue, but that was down 19% from the same quarter a year-ago. What’s more, overall BlackBerry shipments dropped by 21% while the PlayBook did absolutely nothing to give the iPad a run for its money.
In a press release issued at the time, newly minted RIM CEO Thorsten Heins said that the company is poised to face significant business challenges over the next few quarters.
This past Saturday, word came via Reuters that RIM recently hired an outside law firm to help it work out a restructuring plan that might encompass the sale of assets, patent licensing schemes, and whatever else may be necessary to help RIM out of its dire straights.
As part of the struggling Canadian smartphone maker’s strategic review, the RIM board is discussing ways to boost revenue from its new BlackBerry 10 operating system and possibly opening up its proprietary network, the sources said.
At one point, RIM was hoping to add as much as $4 billion in revenue from deals with major telecom carriers, sources said.
It would appear that RIM is either in, or closely approaching panic mode.
