It seems that last nights announcement of a major change in the management of Research In Motion (RIM) has done little to change the company’s fortunes, at least in the short term.
RIM Co-CEOs Mike Lazaridis and Jim Balsillie announced last night that they were stepping down from their roles, and that Thorsten Heins – a little known executive from the company – would be taking over. Lazaridis and Balsillie both announced they would keep their current roles on the board of directors, and Heins stated that he planned to follow the strategy laid out by the former CEOs.
The old saying of “that’s as helpful as re-arranging the deck chairs on the Titanic” immediately sprang to mind.
Seeing this as nowhere near the major overhaul many analysts feel this company needs, the stock price opened down 72 cents, or 4.2%, to $16.28, and immediately continued to fall.
RIM has been in desperate need of a shake-up for some time, and while none us at TechnoBuffalo are financial experts, it doesn’t make a lot of sense for the CEOs of a troubled company to be replaced by another CEO that simply says he will do more of the same. The vast majority of analysts out there has said this company is in need of major changes to survive, and shuffling executives around just to shuffle them sure doesn’t appear to fulfill that need.
The stock market is always a volatile beast, and one day’s performance doesn’t always tell the tale of how things will shake out, but this certainly can’t be the start RIM was hoping for.
What do you think about the CEO change at RIM?