TORONTO (AP) — BlackBerry will consider selling itselfafter the long-awaited debut of its new
phones failed to turn around thestruggling smartphone maker.The company said Monday that itsboard has
formed a special committee to explore "strategic alternatives"in hopes of enhancing the
company’s value and boosting adoption of itsBlackBerry 10 platform.The company said its options could
also include joint ventures, partnerships, or other moves.The Canadian company’s U.S-traded stock closed
up 10.5 percent to $10.78 on Monday.TheBlackBerry, pioneered in 1999, had been the dominant smartphone
foron-the-go business people and other consumers before Apple debuted theiPhone in 2007 and showed that
phones can handle much more than emailand phone calls. In the years since, BlackBerry Ltd. has since
beenhammered by competition from the iPhone as well as Android-based rivals.InJanuary, the company
unveiled new phones running a revamped operatingsystem called BlackBerry 10 designed to better compete.
But its marketshare continues to lag. IDC said last week BlackBerry has fallen tofourth place in global
smartphone sales, now trailing Microsoft. IDCestimated BlackBerry’s worldwide market share at 2.9
percent. BlackBerryalso warned in June of future losses.Mike Walkley, an analyst with Canaccord Genuity,
said sales are getting worse even with price reductions for the new phones."Nowthey have to go to
the next step of what’s best for the company andshareholders to survive long term because it doesn’t
look promising onBlackBerry 10 sales," Walkley said.Monday’s announcement marksthe second time
BlackBerry has said it has hired bankers to help weighits options since Thorsten Heins became CEO in
early 2012. The companyhad faced numerous delays modernizing its operating system with theBlackBerry 10.
During that time, it had to cut more than 5,000 jobs, andshareholder wealth declined by more than $70
billion.Heins hadsaid then he was not actively looking to sell BlackBerry, but wanted tobe prepared
given the challenging environment. He ended up focusing onlaunching BlackBerry 10 this year, but the
company warned in June offuture losses.Analysts on Monday began guessing who might want to buy
BlackBerry."Ifthey can get it done they should absolutely do it. If (BlackBerry has) afuture it
would be better to do out of the public eye," said BGCFinancial analyst Colin Gillis.Given that
director Prem Watsa,the company’s largest investor with a 9.9 percent stake, is resigningfrom
BlackBerry’s board "due to potential conflicts that may ariseduring the process," some picked
him as a possible bidder.Watsahas said that he believes BlackBerry can turn itself around, but that
itmight take three to five years. He’s the founder of insurance companyFairfax Financial Holdings Ltd.
and is one of Canada’s best-knowninvestors. "I continue to be a strong supporter of the company,
theboard and management as they move forward during this process, andFairfax Financial has no current
intention of selling its shares," Watsasaid in a statement issued by BlackBerry.Gillis said
Watsa,partnered with some financial backers like pension funds, could try tobuy BlackBerry. Walkley
rejected that idea, saying if Watsa wereinterested, he would have tried to buy BlackBerry before
now.Technologycompanies like Apple, Google or Microsoft would not be interestedbecause they already have
their own mobile platforms, Gillis said."Anyone who is a player in the space has taken a sniff and
moved on. Nowyou’ve got financials."Jefferies anaylst Peter Misek, however,said South Korea’s
Samsung could be interested in buying BlackBerrybecause Google has launched a new phone of its own from
its Motoroladivision, the Moto X. In its quest for an independent operating systemfor its phones, adding
BlackBerry’s capabilities would be far easierthan developing a system from scratch, Misek said.There has
alsobeen speculation that the PC maker Lenovo or telecommunicationsequipment maker Huawei, both based in
China, were interested inBlackBerry. But Gillis also said he doesn’t see Canadian or U.S.regulators
allowing BlackBerry to be owned by a Chinese company.Majorclients like the U.S. Department of Defense
would abandon BlackBerry ifit was bought by a Chinese company, Gillis said. "Its core reputationfor
security would fall apart really fast."The strategic reviewwill be headed by Timothy Dattels, who
joined BlackBerry’s board lastyear and is a senior partner at TPG Capital, one of the world’s
largestprivate equity firms. Gillis noted that TPG passed on participating intaking computer maker Dell
private due to uncertainty of the PC businessbut said the firm could be interested in BlackBerry.
BlackBerry hasjust over $3 billion in cash and no debt. The market capitalization is$5.7
billion.BlackBerry said in its release that there can be noassurance that the exploration process will
result in any transactionand declined further comment unless and until its board approves aspecific sale
or concludes a review of strategic alternatives.JPMorgan Chase & Co. is serving as its financial
adviser and Skadden,Arps, Slate, Meagher & Flom LLP and Torys LLP are legal advisers.Copyright
2013 The Associated Press.