BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB), along with selling itself to investors, is apparently considering selling its office space too. The struggling handset maker is reportedly in talks with real estate firms to sell a few of its 20 properties in the Waterloo, Canada, says a report from The Globe and Mail. BlackBerry wants to sell off its property and take the building back on a lease.
Sale of office space to bring down expenses
The Waterloo, Ontario-based company is looking forward to selling the office space to bring down the cost.
“As we work to our target of reducing expenditures by approximately 50 percent over the next three quarters that includes optimizing our space,” the said company said in a statement.
Further, the company mentioned that it would like to sell some space to the key partners who need it, provided it has no use. In the latest financial report, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) showed that it runs its operations from two campuses, with 27 buildings total. Out of 27 buildings, 21 are owned by the company, and seven are leased.
The Central Waterloo campus of the smartphone maker includes engineering, manufacturing, and research and development groups, while the North Waterloo campus incorporates two recently constructed buildings that are the base for the company’s corporate, administration, and finance operations.
BlackBerry down in other geographies also
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) slashed off 40 percent of its workforce and is being considered to be taken over by investment firm Fairfax financials. The handset maker posted a loss of $965 million in the recently concluded second quarter of fiscal 2013. Results were announced after BlackBerry revealed plans to go private.
In a filing, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) revealed that it is going through a decline in global subscribers, primarily in those geographies where they once ruled. The decline comes in the wake of intense competition that is taking its toll on company’s financial and operational results. First it was just the United States where the company was falling, but now the condition seems to be more generalized around all geographies. The primary reason for this decline was the lack of apps, and users’ inclination towards low-priced smartphones, which are powered by Google’s Android operating system.
BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) might utilize its real estate to quickly unlock the value and add some more cash to its cash balance. Selling off the assets and adding up cash can allure other firms who are considering taking over BlackBerry. However, there is no surety, as of now, whether the company is just taking advice from the third party on the value of real estate to give to potential buyers or is really planning to sell it.