Thorsten Heins Would Love to Sell BlackBerry

Bloomberg is reporting that Thorsten Heins, the CEO of BlackBerry (NASDAQ: BBRY  ) , is going to get quite the golden parachute if he can sell the company and be replaced by a new leader.

At current prices, Bloomberg estimates Heins' golden parachute compensation package to be worth approximately $44 million. For that kind of money, it's currently in Heins' best financial interest to sell the company and live off the spoils.

However, finding a potential suitor may prove to be difficult for a number of reasons. Pacific Crest analyst James Faucette believes that the company's $4.3 billion in purchase commitments may put a damper on share premiums. Additionally, the company's shrinking market share may make potential suitors wary.

In the following video, Fool contributor Steve Heller discusses Heins' golden parachute and why it'll likely be difficult for the company to be bought out for a high premium.

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Comments from our Foolish Readers

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  • Report this Comment On August 19, 2013, at 6:14 PM, i7up2001 wrote:

    An other misleading article based on a know Bear PAC. first let me address the 4.3B, If a company as 13B in salesa year. 3.2B last QTR it is more than normal to have commitment for 4.3B for 1 year or less, Also note that's it's down more than 1B from March 2013 as product launch.As for T Heins package, It's normal practice and assure the CEO to adress any offer, Plus we are talking of the #1 in a 13B company. The amount is not over the top !

  • Report this Comment On August 19, 2013, at 8:28 PM, Oril wrote:

    Same old crap. Got any real news?

  • Report this Comment On August 19, 2013, at 10:30 PM, RandomMeaning wrote:

    Frankcourt, you are missing the point. All of your rationalization doesn't matter. What matters is that they are "off the books" which means that $4.3 billion isn't accounted for in Blackberry's illusion that they are a debt free company. In fact, the cash balance they've been proudly stating is actually cash that hasn't been applied toward paying existing debts yet. In other words, Blackberry is using an accounting trick to create an illusion that hides the fact that they are actually in debt with no cash in reserve.

    Secondly, you are missing the point again with Thorsten Heins' reward for selling the company. Yes, golden parachutes are quite common. The question you should be asking is: why did the Board of Directors recently double that reward while presenting a new found interest in selling the company? Answer: because that's exactly what they want him to do, sell the company.

    Third, that implies another question: who's interest is Thorsten Hein's serving now? The shareholders or the Board of Directors? Or was he always serving the BoD over the shareholders? Don't be too hard on Mr. Heins though, he has been trying to work with the cards he was handed when the owners left the table. They didn't leave him much to work with.

    Then again, he has upheld their tradition of misleading the shareholders through misdirection and withholding information. He's not worried though. The Blackberry fans will defend him anyway.

    And finally, what are you using to post with? Windows 7 or 8, all iOS or OSX, and/or current Android devices would have pointed out and corrected your numerous spelling and typographical errors. Perhaps a Blackberry or a Playbook?

    On a side note, I find the fall of RIM/Blackberry very disappointing. I was always proud of them for remaining independent and working on their own OS, even if QNX wasn't the silver bullet a few posters tried to convince the world it would be. They just didn't have the software talent to pull it all together fast enough. Then again, very few companies do. Also, having leadership that points the talent in the wrong direction makes it all that much harder. Maybe if they had spent more time working on code instead of sending their minions across the internet to post in comments sections . . .

  • Report this Comment On August 19, 2013, at 11:08 PM, i7up2001 wrote:

    RandomMeaning refer to 6K and you will see it refers to PO and commitments. Not product or components received.

    Purchase obligations and commitments amounted to approximately $5.2 billion as at June 1, 2013, with purchase orders with contract manufacturers representing approximately $4.3 billion of the total. The Company also has commitments on account of capital expenditures of approximately $2.1 million included in this total, primarily for manufacturing and information technology, including service operations. The remaining balance consists of purchase orders or contracts with suppliers of raw materials, as well as other goods and services utilized in the operations of the Company including payments on account of licensing agreements. The expected timing of payments and actual amounts to be paid for these purchase obligations and commitments is estimated based upon current information and the Company’s existing contractual arrangements with suppliers. The timing of payments and actual amounts paid may differ from estimates depending upon the timing of receipt of goods and services, changes to agreed-upon amounts for certain obligations, and payment terms or changes to the contractual relationships between the Company and its suppliers. The Company’s purchase obligations and commitments generally increase or decrease along with the demand for the Company’s products, or as new service offerings are either launched or exited.

  • Report this Comment On August 20, 2013, at 8:50 AM, cbglobal wrote:

    You too can be a Motely Fool. All you have to do is believe the junk they write. Just suspend belief. You can do it.

  • Report this Comment On August 20, 2013, at 2:21 PM, BioBat wrote:

    Prem Watsa rarely gets investments wrong, owns 10% of BBRY shares, is bullish on the company (he believes the appropriate value is near $40/share), and just resigned from the board citing conflict of interest. He's clearly gearing up for a bid on BBRY, the only question is at what price. The BoD won't take anything under $10 and it's arguably they might not accept an offer under $15.

  • Report this Comment On August 20, 2013, at 8:44 PM, OracleofOmahaha wrote:

    bbry better take whatever they can get. They are in no position to make any demands or they will be left with whatever the breakup value is worth.

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