Blackberry Headed for a Breakup?

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Aug. 23 (Bloomberg) -- Bloomberg’s Matt Miller and Bloomberg Industries John Butler discuss Blackberry’s struggle to pull off a turnaround in “On The Markets.” (Source: Bloomberg)

John, went so -- what went so wrong with the canadian company?

Two things.

They never developed apps.

They were the first company to put e-mail in everyone's pocket.

It was a great application at the time, but they never expanded beyond that.

The other thing they did was, they used to be that core enterprise device.

That was before people brought their own phones to work.

They really had that market.

They moved into consumer with devices that were not quite competitive with samsung and apple, so they really got crushed there, in my view.

What happens to the company?

It is not going away, right?

Even the president is reliant on a blackberry.

What happens to the company now?

My sense is they go private.

All the evidence points that way.

You have these larger shareholder of blackberry, he stepped down due to potential conflicts of interest.

He owns fairfax international.

The rumor is he is putting together a group of venture capitalists to take blackberry private.

I think that is the best option.

John, this is a question we have been asking a lot lately because of l -- because of dell and companies that are similar, what is the benefit of going private?

Why can't you turn it around as a public company?

Click think about it.

Anyone who has seen tech turnaround knows the first step is to stabilize the company.

Rim has done that -- or library, i should say.

You has to identify the niche where you have a lane to run in.

They are right at that point.

They need time.

I think going private buys you that time.

Plus, they do not have to make it every quarter.

What chance do you give them?

Will blackberry still exist in 10 years?

I think so.

But i think it could be in pieces, kind of like we see with motorola today.


We are on the markets again in 30 minutes.

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


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