Yesterday's announcement regarding the takeover bids that were being considered by BlackBerry came after nearly one year of unsuccessful canvass, according to two people familiar with the matter. They said BlackBerry hired advisers a year ago to look for potential buyers.
During the last few months, JPMorgan Chase & Co. and RBC Capital Markets were in talks with possible bidders. The bankers discovered that only a few bidders were interested in buying the whole corporation, particularly among private equity firms. The sources added that concerns regarding the decline in BlackBerry smartphone sales and the deterioration in the number of subscribers were raised.
BlackBerry's dimming potential resulted in the company's announcement that a board committee would evaluate every possible option. This would include joint ventures, collaboration or an outright sale. Chief Executive Officer Thorsten Heins admitted that when he hired the banks last year, it was not the "main direction" he was considering.
Within the last two days, optimism that the Waterloo, Ontario-based company could attract buyers has boosted the stock by 12%. BlackBerry shares rose by 1.4% to USD10.93 at the end of trading session today in New York, cutting their decline this year to only 7.09%.
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