After the press release that RIM CEO Thorsten Heins released yesterday, many an analyst have declared that RIM may be in need of a government bail-out if things get worse. In response to such claims the Federal Minster of Finance, Jim Flaherty, has publicly stated today the Tory (Conservative) government has no intention of offering a bail-out to RIM if they are asked. Flaherty did mention that he sees RIM as an important Canadian company that as provided much research, innovation and development in Canada, but suggested that the company need to reorganize itself.
I am not sure if Minister Flaherty read the same press release as we did, as I am pretty sure that Heins stated that RIM was looking to cut costs in amounts upward of $1 billion. With some of that cost cutting unfortunately coming from the loss of jobs by possible thousands of RIM employees. In my books that pretty much sums up a “re-organisation” to a certain degree.
The idea of RIM potential becoming a foreign-owned company if the government did not step in was also asked to Flaherty and his response was “he wouldn’t speculate and noted the government hasn’t been “asked to review any proposal for RIM under the Investment Canada Act.”
After re-reading the press release from Thorsten Heins I don’t think that the Canadian government will be asked for a bail-out by RIM anytime in the near future. Hopefully analysts and government officials alike will stop to rain down on the BlackBerry parade and wait and see how BB10 produces in the market after release.