BlackBerry ditches its CEO as potential buyer falls through
While Google may have been among a lengthy list of rumored suitors for BlackBerry, it appears its latest attempt to sell the company has failed. In fact, the collapse of the deal with Fairfax has led to the ousting of CEO Thorstein Heins and the raising $1 billion in convertible debt. So, you win some you lose some, eh?
The “new” BlackBerry will be led by John S. Chen who will be appointed Executive Chair of BlackBerry’s Board of Directors and is now responsible for the strategic direction, strategic relationships and organizational goals for BlackBerry. We wish John the very, very best of luck in this difficult climate.
“Today’s announcement represents a significant vote of confidence in BlackBerry and its future by this group of preeminent, long-term investors,” said Barbara Stymiest, Chair of BlackBerry’s Board. “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. This financing provides an immediate cash injection on terms favorable to BlackBerry, enhancing our substantial cash position. Some of the most important customers in the world rely on BlackBerry and we are implementing the changes necessary to strengthen the company and ensure we remain a strong and innovative partner for their needs.”
It’s an unfortunate day for the folks in Waterloo and while there was an inkling of hope that Google might scoop up the company formerly known as RIM, it appears they are now back at square one in their attempts to knock Android and iOS off their pedestals.