RIM chiefs no longer billionaires thanks to plummeting RIM stock

By on Jun 23, 2011 at 6:01 PM
Business June 23, 2011

Shares of RIM stock have taken a beating since the company announced devastating first-quarter earnings last Thursday. The Waterloo, Ontario-based BlackBerry maker missed Wall Street’s first-quarter consensus, it lowered its full-year guidance, it announced workforce reductions, it confirmed product delays and investors went running for the door as did a top executive. Since the earnings release last week, RIM’s stock has fallen more than 25%. This is bad news for every RIM investor, but two in particular must be especially upset. RIM Co-CEOs Mike Lazaridis and Jim Balsillie collectively own more than 10% of the company, a stake that helped each man achieve billionaire status. Last year, Lazaridis was ranked the world’s 651st richest man by Forbes with a net worth of $1.9 billion, and Balsillie was No. 692 on the list with a net worth of $1.8 billion. Fast forward to today, and neither man can call himself a billionaire any longer. The cheifs’ stake in the company is still worth more than $1 billion combined, but separately, their net worths are now just roughly $800 million a piece. We doubt the employees set to be laid off in the coming weeks and months will shed any tears for the Co-CEOs’ loss, but it’s just another piece of a puzzle that continues to fall apart. Some analysts believe RIM is hardly out for the count, however, and we agree that the company has a bit of fight left in it. If Balsillie and Lazaridis hope to rejoin the billionaire club, it’s time to put those gloves on and start swinging.

Read

Tags:
, , , , , , , , , , , , , , ,
68 Comments

Related Articles

  • Steel

    Geez…  then those guys should really step down so someone who knows something about tech can fix this company.  It would be better for their personal bottomlines.

  • http://profiles.google.com/stylzkartel Stylz Kartel

    Forbes notes on their blog that “The net worths of the Ontario firm’s
    high profile cofounders Mike Lazaridis and Jim Balsillie, both of whom
    get almost entirely all of their wealth from RIM stock, have sunk… These
    days they appear to be worth in the neighborhood of $800 million or so…
    Even with all the company’s recent woes, they would still likely be billionaires today if not for their notable generosity.”

    from CB: The founder and Co-CEO of Research In Motion, founded the Perimeter Institute for Theoretical Physics with
    a personal donation of $100 million. Mike L. wasn’t the only RIM
    investor; he convinced Doug Fregin and Jim Balsillie each donated $10
    million from their own pockets. In 2008, Mike L. donated a further $50
    million to PI.
    Jim Basillie donated $20 million to create the Centre for International Governance Innovation with
    the help of an additional $10 from Mike L.  Even less glamorous
    donations nevertheless benefit the city. Recently, RIM’s donation to
    the The Food Bank of Waterloo Region allowed them to purchase a new refigerated truck. This was in addition to the company’s annual food donation drive.

    Steve Job’s has yet to donate any money, publicly anyways.

    • Greg

      Those that give to charity publicly have such huge egos. How do you know that Jobs doesn’t give privately? Goes to show how the mighty RIM has fallen if you have to tout their charitable contributions.

      • http://profiles.google.com/stylzkartel Stylz Kartel

        I don’t know that SJ doesn’t donate privately, which is why i said “publicly anyways”. And this particular post is about the wealth of the CEO’s, which includes things such as donations. I just thought it made sense to add some clarity/context to the post. Had this been a post about how RIM’s inventory to sales percentage (a key performance indicator) has decreased from 4.41 percent last year to 3.1 this year, or how RIM’s sales of $20.6 billion, based on trailing 12 month sales is
        higher than the sales for the year ended February 2011 (which means
        demand for the company’s products is increasing), or how the long-term debt for RIM is $0.0 million, while the net current
        assets are $4.1 billion (this indicates that the company’s financial
        position is very sound), then yeah, I could see how “touting” their charitable donations wouldn’t make sense.

      • Applesucksfatties

        @Stylz  - Finally someone who gets the financials.   Those iKoolaid drinkers can say all the crap they want about RIM going down the tank.. but the RIM balance sheet and income statement both back up the fact that they aren’t going anywhere for awhile. Sorry, iDouchers.. now run along and play with your iFart app on your phone condom covered toy……

  • Anonymous

    Dont they look like a couple of pompous windbags?

    http://www.real-privacy.no.tc

1 2
blog comments powered by Disqus