TweakTown
Tech content trusted by users in North America and around the world
6,097 Reviews & Articles | 39,129 News Posts

BlackBerry to blow most of its $2.6 billion cash pile very quickly

BlackBerry has $2.6 billion in cash, will run its numbers down very quickly in the coming months (NASDAQ:BBRY)

| Business, Financial & Legal News | Posted: Oct 6, 2013 3:54 am

BlackBerry won't be part of the consumer handset market soon, but the Canadian phone maker does have a decent cash pile at the moment: around $2.6 billion. Not huge, but it's still in the billions.

 

TweakTown image news/3/3/33299_04_blackberry_to_blow_most_of_its_2_6_billion_cash_pile_very_quickly.jpg

 

AllThingsD is reporting from a research note from Bernstein Research analyst Pierre Ferragu, who says that BlackBerry is on track to blowing through $2 billion of its cash pile, over the next six quarters. This is just 18 months away. He says that this is because "the company is losing users at a very high pace, has a stretched working capital and massive off-balance-sheet commitments that will turn into cash burn in the next four quarters."

 

Ferragu also believes that this cash burning could also put problems on its deal with Fairfax Financial, who plans to buy the company at $9 per share with many potential investors starting to worry if BB begins whipping out its wad of cash left, right and center. BlackBerry is on track to spend over $500 million of its $2.6 billion cash pile in the next three months alone, so I think we'll see this money disappear quicker than 18 months.

NEWS SOURCES:Bgr.com

Related Tags

Further Reading: Read and find more Business, Financial & Legal news at our Business, Financial & Legal news index page.

Do you get our news RSS feed? Get It!

Got an opinion on this news? Post a comment below!

Latest Tech News Posts

View More News Posts

Forum Activity

View More Forum Posts

Press Releases

View More Press Releases