It looks like BlackBerry is back on track. Shares at the smartphone maker, previously known as Research In Motion, rose more than 4% after Google, Cisco and SAP were named on the growing list of companies interested in bidding for it.
Intel, LG and Samsung were also named by Reuters last weekend, while private equity firms Cerberus and Capital Management reportedly asked the company to provide financial details about its business segments, so it’s not surprising that shares rose in the company.
While it may look as if the company is on route to profitability once again, is it enough to increase its overall value or accelerate deployment of BlackBerry10 or Z30 smartphone?
With a tumbling share price and dismal quarterly results, I’m not so sure.
Blackberry’s troubles have pushed the company to reduce its workforce by half and more recently sparked calls by a shareholder to file a class action law suit, claiming the company had misled investors about the state of its operations.
Its share of global smartphonse has plummeted from a peak of close to 50% in 2009 to less than 4%, according to figures released by analyst IDC in August 2013.
BlackBerry also reported a net loss of $965m with a drop in sales during the second quarter this year, while the value of its patent portfolio and licensing agreement is predicted to reduce by half in the next 18 months.
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Earlier this month, Gartner recommended that customers should switch to other mobile phones, which BlackBerry labelled as "purely speculative".
