Investor Prem Watsa Doubles Shares in Troubled Research In Motion

Prem Watsa is now believed to be the largest shareholder in the troubled Research In Motion, after basically doubling his investment in the company.

He now owns 9.9 percent of RIM, according to a recent filing, and it appears he has been purchasing shares that some other investors appear eager to get rid of.

Watsa owned 5.1 percent of RIM as of January.

Company shares have lost 95 percent of their value since 2008, according to The Associated Press. Rival products with iPhone and Android operating systems are eating away at RIM’s market share.

The AP reported earlier this year that Watsa – who found Fairfax Financial Holdings Ltd. and is a member of RIM's board – claims RIM may need three to five years to turn the company around, so he has a longer investment horizon.

“He [Watsa] said that he’s looking to average down (his cost) and their investment horizon is normally three to five years – they are not looking for a quick turnaround,”  Sameet Kanade, an analyst at Northern Securities, told Reuters News Agency.

By making the investment, Watsa appears to show confidence in RIM CEO Thorsten Heins and the soon-to-be-released BlackBerry 10 device. BlackBerry 10 is expected to be offered next year, missing an earlier release date.

“We strongly believe that Thorsten Heins is singularly focused on the success of RIM and its BB10, and we firmly support him and the entire BlackBerry team working tirelessly to bring this exciting new platform to market,” Fairfax spokesman Paul Rivett said in an e-mail to Reuters.

Meanwhile, Heins has directed bankers to undertake a review that may lead to joint ventures, partnerships or sale of the company, Reuters added.

Fairfax now owns 51.9 million RIM shares, Bloomberg News reported. The shares are worth about $351 million, Bloomberg added.

RIM also has some 80 million BlackBerry customers, according to latest report by MobilityTechzone.

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