Oh Blackberry! The short and sweet of it – Blackberry is not for sale and their CEO has been fired. According to the opening line of “BlackBerry abandons search for buyer” by Aaron Smith and David Goldman of CnnMoney.com, “Shares of BlackBerry plunged more than 16% on Monday after the company abandoned plans to sell the company and fired its CEO”. The only good in the story is that Fairfax Financial who previously bid to buy the company stated they would instead invest $1 billion in the company. Barbara Stymiest, chairwoman of the company’s board, states this $1 Billion “…provides an immediate cash injection on terms favorable to BlackBerry”.
However favorable to the company $1 Billion may be, shareholders clearly were not excited with news that the company wasn’t for sale. The CEO Thorsten Heins who joined the company with agendas to not change marketing strategy, is “leaving the company and [will] step down from the board”. Executive chairman of the board John Chen “will serve as interim CEO with Prem Watsa, CEO of Fairfax “[heading] up the committee to search for a permanent successor to Heins”.
According to the article, there is no stated reason behind the “no sale” sign. Maybe BlackBerry thinks $1 Billion is enough to make up financial losses, produce a competitive viable product, and restore the company to its previous majesty. Maybe a new CEO seems better than a new owner taking the company private. Who knows? For now, the shares have fallen in disbelief that there is a better solution than selling the company.