With its shares continuing their downward spiral Monday after last week’s announcement of massive layoffs and a loss or nearly $1 billion, the only question now for BlackBerry Ltd. is whether to sell the company in one piece or to break up the company, according to analysts.
BlackBerry would get more money if it sold its software business separate from its sinking hardware business, according to Evercore Partners Inc. an independent investment banking advisory firm based in New York.
BlackBerry needs to “act quickly and decisively” on any potential sale and should look to “sell assets to bolster its position,” according to analysts at financial services Well Fargo &Co.
“Given the failed BB10 launches, our view is the most likely outcome is a takeover for BB,” analysts to the news agency Reuters.com.
Brokerage National Bank Financial, also believes that recovery is unlikely for the troubled Waterloo, Ont.-based smart phone maker. BNBF cut its price target to $5 from $8 and valued BlackBerry at about $2.6 billion.
At its peak in 2008, BlackBerry was a major player in the smart phone arena and was valued at $80 billion. Apple Inc. was just launching its iPhone handset at that time.