Winds of change are starting to blow over Research in Motion (RIM) in Canada. On Sunday co-CEO’s Jim Balsillie and Mike Laziridis handed over their duties to Thorsten Heins. Heins has been Chief Operating Officer of RIM (BlackBerry) for the past 4 years. The fact that the RIM board felt the CEO position should be held by an insider without looking for a fresh pair of eyes from a neutral person is interesting. They are obviously trying to make a change without rocking the boat completely. It also looks like a figure head change as Balsillie and Laziridis are no longer associated with the leadership of RIM. The 20 year reign that Balsillie and Laziridis had, comes to a relative unceremonial end.
Mike Lazaridis, former Co-Chair and Co-CEO, has become Vice Chair of RIM’s Board and Chair of the Board’s new Innovation Committee. As Vice Chair, he will work closely with Mr. Heins to offer strategic counsel, provide a smooth transition and continue to promote the BlackBerry brand worldwide. Mr. Heins said that RIM has a strong foundation on which to build. “We have a strong balance sheet with approximately $1.5 billion in cash at the end of the last quarter and negligible debt. We reported revenue of $5.2 billion in our last quarter, up 24% from the prior quarter, and a 35% year-to-year increase in the BlackBerry subscriber base, which is now over 75 million.”
Remember Balsillie and Laziridis have made it known that they intended to try and save the company. I think the lack of an objective person at the helm of RIM is a concern. Heins has done the expected things, by stating that BlackBerry (RIM) is a great company and that it has great potential. Media reports seem to indicate that Heins is an engineer and not a business executive, yet the RIM board wanted him to take over from the departing co-CEOs. Would the logical thing not be to have the business evaluated and then start to look for a potential buyer?
If I was a RIM shareholder, I would ask if Thorsten Heins has been given a period of time to fix the Canadian cellphone manufacturer? The question over a time period is justified as it ensures that not all value is lost before a potential suitor can be found The concern for me as an outsider is that the downward spiral seems to have hit the share price hard and ensured that a dark cloud surrounds RIM. The damage may already have been done with regards to RIM..
(Jim Balsillie (left) and Mike Laziridis(right))
RIM will be acquired by someone for the right price. The board has already turned Amazon down to the dismay of RIM shareholders. Heins has mentioned in the press that he is considering licensing RIM technology to other cellphone manufacturers. That is a good idea in order to make revenue but I think it is too late. It does seem that the power has shifted and I wonder whether the departure of Balsillie and Laziridis is to be seen as a peace offering for the vocal shareholders.. Welcome aboard Mr Heins, I don’t think anybody has a clue how difficult your reign at the top of RIM will be…
