RIM’s stock hammered after naming new CEO

RIM-co-ceos

Well, the stock market doesn’t seem to be impressed with Research In Motion’s leadership change, as RIM’s stock ($RIMM) fell 8.59% to close at $15.56 today. This was the first business day since the news came out that former COO Thorston Heins would be replacing former co-CEOs Jim Balsillie and Mike Lazaridis.

Balsillie and Lazaridis also gave up their positions as co-Chairmen of the Board as we reported at the beginning of January. In their place is a single Chairman: Barbara Stymiest. RIM has named Mike Lazaridis as new Vice Charman of the Board, while Jim Balsillie will stay at the company as a director.

The news of RIM’s new CEO has been met overall with lukewarm reception. Maybe we just need to give this guy a chance. Expectations are very high, however, with RIM’s reputation in the mobile space shrinking every day. After failing to keep up with the likes of iOS and Android and releasing the PlayBook, a sad excuse for a tablet, the company should be banking on Heins for a major turnaround in 2012.

RIM has seen a steady decline over the past year in its stock price. Its 52-week high was achieved in February 2011 at $70.54, but today’s closing price of $15.56 is dangerously close to the 52-week low of $12.45. The stock is now trading during market After Hours at $15.55.

Additional reading: Meet Thorsten Heins, new president and CEO of RIM
Additional reading: Where does RIM go from here
Additional reading: 2011 in review: Research In Motion and BlackBerry

[via Asymco]

  • http://twitter.com/NotRahmEmanuel NOT RahmEmanuel

    Their stock was pummeled because RIM blew it — they made a safe choice.

    Wall Street wanted a new CEO who is truly new (ie: an outsider) or, better still, some kind of mobile-sector visionary. This Thorsten guy seems to be neither. And the old CEOs haven’t vanished; they’re still around to make trouble.

    Worse, tho’ their investors were trying to stay optimistic any benefit of the doubt was demolished by what Heins said in the interview on RIM’s YouTube page. Bottom line: he’s just another guy in a suit who thinks RIM are doing fine, as-is.

  • Anonymous

    Just adopt android RIM….

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