Everybody hates Jim. That appears to be the popular opinion towards Jim Balsillie lately after his most recent high-profile attempts to add new business acquisitions to his portfolio, namely between the National Hockey League and Nortel Networks Corp.
While Balsillie’s determined attempts at owning an NHL franchise, despite open objections from league commissioner Gary Bettman, may have given Balsillie’s public image a beating in some eyes, this should not detract from his work as co-CEO of Research in Motion Ltd.
Granted, some of Balsillie’s tactics in his ongoing attempt to purchase the Phoenix Coyotes and relocate the team to Hamilton (after failed past attempts to do the same with the Pittsburgh Penguins and Nashville Predators) have been questionable and even downright manipulative in some instances.
But if the saga between Balsillie and the NHL has proved anything, it’s that Balsillie is a passionate businessman who knows what he wants and will do everything he can to get it.
His battles with the NHL shouldn’t overshadow the fact Balsillie is a superb businessman either. With him at the helm, the BlackBerry’s popularity has grown exponentially, moving out of boardrooms and into the hands of the masses.
It is clear the man knows what he is doing when it comes to wireless telecommunications, which is a large reason why RIM now holds the crown in Canada’s high-tech sector, the very one Nortel used to hold just a few short years ago.
So when Nortel announced it would be selling off its assets earlier this year after failing to recover from bankruptcy, RIM appeared to be the obvious buyer of its most valuable wireless assets.
This is why it is baffling the Canadian government chose to sit back while Nortel reportedly shut RIM out of the bidding process for their LTE Access and CDMA Business assets, opting to cater to foreign bidders instead.
While the NHL has a little more merit for disliking Balsillie, Nortel’s distaste towards RIM isn’t as clear.
This begs the question: what did Jim ever do to you, Nortel?
After years of mismanagement and poor decision-making, Nortel has yet to learn from its mistakes, to the detriment of both the company and to Canada as a whole.
Not only would have RIM kept the Canadian-invented technologies in Canada, but Nortel’s wireless assets could have played a major role in establishing RIM as the undisputed leader in wireless telecommunications in the world. This would have simultaneously boosted Canada’s international profile.
Also, there would have been greater assurance Nortel’s employees would still have jobs following the asset sales. This is something that can’t be said for certain now, following Nortel’s decision to sell their wireless assets to Sweden-based L.M. Ericsson for $1.13 billion instead.
Concerns over job security became headline news last month as reports up to 400 Nortel employees could be laid off following its most recent sale of their business unit to U.S.-based Avaya Inc.
While the Canadian government announced in late September it will investigate the Avaya deal, the decision by Industry Minister Tony Clement not to do the same with the Ericsson sale will be one Canada will surely regret.
While Nortel still has a few more assets on the block, it is unlikely RIM or another Canadian company will be interested or successful in acquiring what's left.
When all is said and done, it is certain Nortel will be added to the list of iconic Canadian companies that have been allowed to slip away, alongside the Hudson’s Bay Company, Labatt and Molson.