BlackBerry CEO Out and a Buyout off the Table
Blackberry announced early today that they will no longer look for a buyer but receive a $1 billion investment from Fairfax Financial Holding Limited. The company was in talk with multiple investment firms for a buyout of the failing company. Along with the investment, Thorsten Heins will step down as CEO. John Chen will take his seat while the company searches for a new leader.
“The BlackBerry Board conducted a thorough review of strategic alternatives and pursued the course of action that it concluded is in the best interests of BlackBerry and its constituents, including its shareholders,” BlackBerry board chair Barbara Stymiest said.
The news of this investment and loss of the buyout has brought Blackberry stock down 21% this morning. This negative news along with little sells of phones could spell the end of the company. Many have put Blackberry on death watch over a two years ago, but they have been able to stay alive for longer than anyone could have expected. The hardware maker recently released Blackberry Messenger on iOS and Android. There has been millions of downloads of the app, but can a messaging app save the company? It’s highly unlikely that the app will catch on nor will the app surpass Whats app usage.
Tell us in the comments below what you think about Blackberry taking an investment instead of selling out to a few investment firms.