{"id":2867,"date":"2012-01-24T10:03:23","date_gmt":"2012-01-24T08:03:23","guid":{"rendered":"http:\/\/blog.pricecheck.co.za\/?p=2867"},"modified":"2012-01-24T10:03:23","modified_gmt":"2012-01-24T08:03:23","slug":"big-changes-at-research-in-motion","status":"publish","type":"post","link":"\/blog\/big-changes-at-research-in-motion\/","title":{"rendered":"Big changes at Research in Motion"},"content":{"rendered":"

Winds of change are starting to blow over Research in Motion (RIM) <\/a>in Canada. On Sunday co-CEO\u2019s Jim Balsillie and Mike Laziridis handed over their duties to Thorsten Heins.\u00a0 Heins has been Chief Operating Officer of RIM (BlackBerry<\/a>) 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.\u00a0 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.<\/p>\n

Mike Lazaridis, former Co-Chair and Co-CEO, has become Vice Chair of RIM\u2019s Board and Chair of the Board\u2019s 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.\u00a0 Mr. Heins said that RIM has a strong foundation on which to build. \u201cWe have a strong balance sheet with approximately $1.5 billion in cash at the end of the last quarter and negligible debt.\u00a0 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.\u201d<\/p><\/blockquote>\n

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.\u00a0 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?<\/p>\n

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\u00a0 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..<\/p>\n

\"\"<\/a>
\n(Jim Balsillie (left) and Mike Laziridis(right))<\/p>\n

RIM<\/a> will be acquired by someone for the right price. The board has already turned Amazon<\/a> 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\u2019t think anybody has a clue how difficult your reign at the top of RIM will be…<\/p>\n","protected":false},"excerpt":{"rendered":"

Winds of change are starting to blow over Research in Motion (RIM) in Canada. On Sunday co-CEO\u2019s Jim Balsillie and Mike Laziridis handed over their duties to Thorsten Heins.\u00a0 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<\/p>\n

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