BlackBerry forms a special committee to weigh options

BlackBerry Ltd. said it’s considering putting itself up for sale, which is the strongest indication yet that the smartphone maker won’t remain independent as competition hurts sales and hammers its stock price.

A special board committee will consider ways to boost BlackBerry’s value by exploring options such as joint ventures, partnerships or a sale of the company, according to a statement today. JP Morgan Chase & Co. will serve as its financial adviser. BlackBerry shares gained as much as 9.1% in New York.

“What BlackBerry is doing is the appropriate course of action,” said to Bloomberg, Charlie Wolf, an analyst with Needham & Co. in New York who has the equivalent of a sell rating on the stock. The likelihood of a sale is at least 50 percent, he said. “The other options, much less likely.”

The change in strategy came as BlackBerry struggled to compete with Apple and phones using Google’s Android operating system. The handset maker launched its new BlackBerry 10 operating system at the end of January and has since launched three new handsets including the touchscreen Z10 and flagship Q10, which has a mini Qwerty keyboard.

However, shares in the company sank almost 30% on June 28 after it reported an unexpected loss and disappointing sales of the new devices, and warned of another operating loss in the current quarter. The company said it shipped out 2.7 million Blackberry 10 smartphones during the previous quarter. That was one million less than expected. The company also reported loss of 13 cents per share, while Wall Street was expecting a profit.

Companys CEO, Mr Heins, who will also serve on the special committee, had previously said BlackBerry would continue with its strategy of cutting costs and pursuing mobile computing opportunities while alternatives were being explored.

BlackBerry released its 10 range this year in an effort to win back market share, but the product has suffered from weak demand and fierce competition. This led to Julys price cut of its Z10 flagship touchscreen model to $49.99. The phone originally went on sale in the US in March for $199.99 with a two-year contract.