Blackberry recently released an open letter to their consumers letting them know that they will still continue to provide excellent service, and customers do not need to panic just yet. Blackberry has been getting a lot of press lately that states otherwise, but they stressed the facts of their annual reports showing that they have no debt and have a lot of cash on hand. Although the letter seemed convincing that Blackberry might do alright, other reports are showing otherwise.
Blackberry has publicly filed that they will be looking for a joint-bid of the company. Fairfax Financial Holdings are offering to buy the company for $4.7 billion although the deal is expected to not go through. The thing that really sticks out about this bid is the low number. The company doesn’t see much more growth in the company and are looking to get it cheap. To put it into perspective Facebook bought Instagram, a company that wasn’t making any revenue, for just shy of $1 billion. Blackberry is also taking offers from giants such as Samsung, but many of these companies aren’t interested in Blackberry as whole. They would just like to purchase certain portions of the company. At first, Blackberry wasn’t interested in splitting up any portions of their companies, but reports have stated that they have become more open minded to the subject.
Another piece of bad news for Blackberry was the closing of a Nova Scotia office that is leaving over 350 employees out of work. In September, the company released that they would be cutting over 4500 employees globally across the company. Through these layoffs, they will have affected over 40 percent of their workforce, and that number will continue to decrease.
Who really knows how much longer Blackberry can hang on? The trend isn’t looking great for company who once was one the largest mobile giants in the industry. Whatever happens, the mobile industry will always see Blackberry as a company who helped pave the way for the future of mobile technology.