RIM Shareholder: If You Can’t Fix RIM, Then Sell It
Research In Motion is broken, and if co-CEOs Jim Balsillie and Mike Lazaridis aren’t capable of fixing it, the company should sell itself or sell off its patent portfolio.
That’s the gist of the call for action put forth by RIM shareholder Jaguar Financial, which has clearly grown tired of watching the company’s sad scramble to regain relevancy.
“The status quo is not acceptable, the company cannot sit still,” Jaguar CEO Vic Alboini said in a letter to RIM’s board of directors. “It is time for transformational change. The directors need to seize the reins to maximize shareholder value before more market value is lost.”
And RIM’s lost plenty of that already. The company’s share price has plummeted more than 80 percent since June of 2008, when it hovered around $149. It has fallen nearly 50 percent this year alone, despite management’s “just you wait” assurances. So Alboini figures it’s about time RIM establish a committee of four or five independent directors to consider the company’s options if the big transition to the QNX operating system doesn’t rejuvenate the BlackBerry as hoped.
“You cannot put all your eggs in one basket,” Alboini told Bloomberg. “The board should be saying, ‘What if these products don’t pan out?’ You don’t want RIM to turn into another Nortel. … This decline in the company’s standing can largely be attributed to significant execution delays, inadequate mobile applications and the lack of a competitive product that addresses the needs of the consumer marketplace.”