Seemingly impossible just a few years ago, news surfaced yesterday that Research In Motion (RIM), the maker of BlackBerry devices, will split into different entities, at least if activist investors have it their ways.
Jaguar Financial, a boutique investment firm, announced it already gained support from 8% of RIM’s stockholders and currently negotiating to increase that percentage to 12%. It all stemmed from the recent plunge of RIM in both market share and stock prices due to BlackBerry’s inability to compete against the Apple iPhone and Android devices. Furthermore, the company’s debacle of its PlayBook tablet and the current service outages add to stockholder’s disaffection. In a terse statement by Jaguar Financial, it called RIM “…management dominance and a lack of board oversight, which leads to a leaderless company,” and asked the company to either sell itself, merge with another company, or split into different entities. No official response to the suggestions from RIM thus far.