Jaguar Financial asked RIM today, on behalf of itself and other shareholders, to consider ways to maximize shareholder value. Suggested in Jaguar’s statement on carrying out this process was the pursuit of strategic options for RIM, which includes potential sale of the company or the “monetization of the RIM patent portfolio by a spin-out to RIM shareholders.”
“The status quo is not acceptable, the Company cannot sit still. It is time for transformational change. The Directors need to seize the reins to maximize shareholder value before more market value is lost,” said Chairman and CEO of Jaguar Financial, Vic Alboini.
To carry out the maximization process, Jaguar suggested RIM appoint a Special Committee of the Board of Directors, made up of four or five current members of the Board.
Jaguar explained that the reasons call to action was because of RIM’s poor share price performance, lack of innovation resulting in a loss of market share, corporate governance concerns and recent consolidation in the mobile and patent spaces.
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This announcement from Jaguar seems to be a continuation of RIMs current dismal outlook held by stockholders. To those who have been following RIM’s performance struggle throughout the year, this suggestion from Jaguar seemed almost inevitable. As RIM seems to get more and more bad news by the week, it’s not a surprise that shareholders are frustrated.
But will the company listen to Jaguar’s suggestion? As of yet the company has stayed true to its pursuit of maintaining market share in smartphone, tablet and technological world even when facing its poor performance statistics. As a large corporation in Canada, many would hate to see the company go, and in the interest of employment, RIM would be a huge loss to the nation. Let’s hope RIM can turn the company around before its only option is to sell.