Alastair Sharp and Pav Jordan, reporting for Reuters:
Just before those numbers were released, activist shareholder
Jaguar Financial called on the company to sell its handset
business and monetize its patent portfolio while retaining the
high-margin services business. “Jaguar believes that the road map
to value restoration lies in a sale of RIM whether as a whole or
in separate parts,” it said.
This is a terrible idea. RIM’s “high-margin services business” is entirely predicated on its handset business. But this is what happens when profits decline — you’re forced to entertain even worse advice from jackass investors. Cf. calls for Apple to abandon its hardware business and license Mac OS for PCs, or, for Apple to abandon Mac OS and make Windows PCs, circa 1995–96.
★ Monday, 19 December 2011