1. jedi365's Avatar
    Hi sorry to sound thick but......if blackberry has billions in the bank and no debt why accept this deal.......im being serious why?


    Posted via CB10
    11-04-13 07:55 PM
  2. Lendo's Avatar
    Are you sure? I think you're kidding.
    11-04-13 08:08 PM
  3. hoopitz's Avatar
    Because they only have 2 billion and 3 billion is better. If they hope to make any sort of major moves in the market, they're going to need the cash to do it. I just hope they spend a good chunk of it on marketing.

    Posted via CB10
    11-04-13 08:11 PM
  4. amazinglygraceless's Avatar
    BlackBerry has a limited amount of cash on hand and the conventional wisdom is they will start burning through that soon, if not already, so this $1B helps to shore them up and put them on firmer financial footing. Some of the issues that makes their current cash position a bit tenuous are:

    1) $1B write down of inventory in the previous quarter.
    2) Possible further inventory write down(s)
    3) Termination of 4,500 employees (severance, post employment benefits. Not sure about the PEB's )
    4) Termination of CEO and possibly other executive and management personnel.

    There are other issues but those are the ones that most readily spring to mind
    11-04-13 08:11 PM
  5. hrim5493's Avatar
    Because they only have 2 billion and 3 billion is better. If they hope to make any sort of major moves in the market, they're going to need the cash to do it. I just hope they spend a good chunk of it on marketing.

    Posted via CB10
    Agree with this statement. In addition, there was much external pressure to change management. A respected figure like Prem Watsa was welcomed probably by the board. If things aren't going right, you need a change.
    11-04-13 08:14 PM
  6. app_Developer's Avatar
    BlackBerry has a limited amount of cash on hand and the conventional wisdom is they will start burning through that soon, if not already, so this $1B helps to shore them up and put them on firmer financial footing. Some of the issues that makes their current cash position a bit tenuous are:

    1) $1B write down of inventory in the previous quarter.
    2) Possible further inventory write down(s)
    3) Termination of 4,500 employees (severance, post employment benefits. Not sure about the PEB's )
    4) Termination of CEO and possibly other executive and management personnel.

    There are other issues but those are the ones that most readily spring to mind
    These are all true, but I think the most significant issue is the outstanding purchase commitments. I saw one estimate recently that those may top $3B now with all of the commitments for all the different models they introduced this year, including the Z30.
    11-04-13 08:20 PM
  7. Lendo's Avatar
    Agree with this statement. In addition, there was much external pressure to change management. A respected figure like Prem Watsa was welcomed probably by the board. If things aren't going right, you need a change.
    Things haven't gone right for many months now.
    11-04-13 08:29 PM
  8. jedi365's Avatar
    BlackBerry has a limited amount of cash on hand and the conventional wisdom is they will start burning through that soon, if not already, so this $1B helps to shore them up and put them on firmer financial footing. Some of the issues that makes their current cash position a bit tenuous are:

    1) $1B write down of inventory in the previous quarter.
    2) Possible further inventory write down(s)
    3) Termination of 4,500 employees (severance, post employment benefits. Not sure about the PEB's )
    4) Termination of CEO and possibly other executive and management personnel.

    There are other issues but those are the ones that most readily spring to mind
    Seriously thank you very much. Much appreciated

    Posted via CB10
    11-04-13 08:31 PM

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