BlackBerry stocks soar by 9% after privatization reports

By IVCPOST Staff Reporter

Aug 10, 2013 01:54 AM EDT

On early Friday, BlackBerry stocks soared by 9% to US$10.08 in trading. The upsurge occurred after the company was reportedly considering the possibility of going private. Once a corporation goes private, the shareholders would not be able to trade their shares in an open market. Furthermore, companies were usually taken private when they require time to streamline their debt or operations.

A report from Reuters said that BlackBerry CEO Thorsten Heins and the smartphone maker's board were studying the advantages of going private. The latest considerations would allow them to keep the confidentiality of BlackBerry's existing problems and potential solutions.

The sales of BlackBerry Z10 and Q10, the company's newest smartphones, were below analysts' estimates. So far in 2013, the Waterloo, Ontario-based company's stocks have fallen almost 20%. At present, its market value is US$4.8 billion compared with its US$84 billion value in 2008.

Reports also said that BlackBerry was considering licensing BlackBerry 10, its current operating system. Possible collaborations with Silver Lake Partners that is currently involved in a US$25 billion bid with Michael Dell to take Dell Inc private, also made noise. However, on Friday, the company's spokesperson told TheStreet that BlackBerry does not "comment on rumor or speculation."

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