Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB)’s annual meeting is set for tomorrow, and the BlackBerry maker’s management is sure to face some tough questions from shareholders. The company returned especially dismal results in its last earnings report, which sent its stock into a 28 percent dive.
Is A Sale Ahead For Research In Motion Ltd (BBRY)?
CEO Thorsten Heins said after the poor earnings report that the BlackBerry brand is heading in the right direction and that management just needs more time to engineer a turnaround. However, Reuters reports that some investors might be looking for another way out, even if that includes selling off the company.
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Reuters editors Janet Guttsman and Peter Galloway report that a source close to Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) believes the company’s board of directors may be pressured into reexamining its options even though they are reluctant to negotiate any kind of deal. Yacktman Asset Management’s Don Yacktman told Reuters that he hopes the board will be “objective enough to do the best thing for the shareholders.” Thomson Reuters data indicates that Yacktman is one of the BlackBerry makers’ top 20 investors.
Waning Interest In A Deal With Research In Motion Ltd (BBRY)
Several analysts have downgraded the BlackBerry maker after its weak earnings report, and interest in the company is apparently waning, along with belief that it can turn things around. The BlackBerry 10 operating system was recently passed by Windows Phone for third place behind Android and iOS, further cementing the view that it won’t be able to recover.
And then there’s the problem of securing a deal even if the board of directors does choose to explore buyout options. According to Reuters, private-equity firms don’t appear to be interested in making a deal with to Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB). One fund manager who asked not to be identified believes that the company’s parts were “worth more than the whole a year or two ago” but that the view is fading. Some bankers and investors say the company’s patent portfolio may still hold some value, however.
Changing Research In Motion’s Name To BlackBerry
One item that is on tomorrow’s agenda is the official name change. Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) has planned since earlier this year to change its name to BlackBerry as a way to enhance the view of its brand. The company changed its ticker symbols to reflect the new name quickly, but it won’t officially become BlackBerry until investors vote through the name change at tomorrow’s meeting.