BlackBerry Has `No Way to Survive': Blair

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Sept. 20 (Bloomberg) -- Wedge Partners' Brian Blair and Bloomberg's Cory Johnson discuss BlackBerry's decision to layoff 4,500 employees and take a pretax charge on the Z10 on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Time that this company was looking to sell itself.

It had to rather public statements like that over the course of the last several months.

These numbers are unbelievably bad.

They were expected to do $3 billion in revenue.

I have made this point to investors for the last few weeks, as soon as they put that for-sale sign up, every enterprise and individual considering a blackberry purchase put the brakes on it.

Sales just dropped off the cliff.

I wrote about that in the last few weeks.

This is evidence, this is exactly what has happened, sales hit a wall.

They have lost money in four out of the past five quarters.

If i look at the forward earnings estimates, losses for every quarter going out to 2016. how can this company survive?

There is no way to survive.

They sell billions in cash.

They have 12,000 employees.

They're cutting 4500 of those by the end of this year.

They're trying to get themselves streamlined.

I think they want to sell themselves by the end of this year.

They want to get as lean as they can.

When you talk about selling the company, let's talk about what they can sell.

Blackberry instant messenger, that's where the patents are, that may be the value.

Can you talk about what that means?


If the customer base leaves, they don't come back.

They sold 6.8 million smartphones in the first quarter.

They are announcing they did 5.8 million.

In million fewer phones -- a million fewer phones.

Who would be looking at this?

There are a few chinese players.

They might willing to come in and just want to buy their 70 million subscribers of the low- end blackberry devices.

Nobody cares about the high-end bb10 devices.

Some of these players might be willing to take a slim margin and sell the cheap blackberries into the emerging markets.

They used to have a hold on corporate america, and corporate america would issue blackberries.

They still do.

It is changed dramatically.

People have migrated more and more towards this iphone independent of what corporations offer.

When microsoft changed their phone server, their exchange server business, they change that software so they could have software security built into it.

It used to be on the back and a blackberry, they would go to corporate cio's and say, you buy that box and that box will give your mobile users fantastic security.

Microsoft added that level of security to their software.

Suddenly you could have different kinds of phones in the enterprise.

They call it be why od, bring your own device.

-- byod, bring your own device.

They are bringing it to their i.t. person and saying, support this.

Everyone who has a blackberry issued by the company as an iphone in their back pocket.

It may be the ipad that led to this.

The users of iphones were using them on the side.

When ceo's saw the ipad, they went to their cto's and said, make this work on the network.

At that point the networks started to change.

You saw the iphone bennett -- benefit and the corporations.

The ipad became a laptop replacement, and has allowed apple to get a stranglehold.

What do you think the valuation is really for this company?

They have a few billion dollars in cash.

There is some that -- no debt.

It is a little under three.

They will see their 70 million subscribers start to decline.

There is some value in the ip.

It is probably a couple of billion at best.

Another couple billion for the patents.

Before this news is out, the market was giving an enterprise value of $2.6 billion.

I'm just trying to do the math.

With the shares outstanding in terms of price per share, this blackberry is still halted.

Trading at about $10. how much downside is there?

I had said single digits for

This text has been automatically generated. It may not be 100% accurate.


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