Tuesday, November 05, 2013

BlackBerry Abandons Sell-Off Plans - CEO Resigns

Latest news from ­BlackBerry is that the planned sale of the company has been ditched. The company now will seek an additional $1 billion in funding. Its CEO, Thorsten Heins, has resigned.
According to CellularNews, the company's largest single shareholder, Fairfax Holdings, which proposed a US$4.7 billion buyout of the company was unable to secure the necessary funding for its highly conditional offer.
Other rumoured bidders also failed to materialise by the Monday deadline.
Instead, the company will raise $1 billion in fresh funding, of which a quarter will be provided by Fairfax Holdings.
Former Sybase CEO, John Chen will serve as interim chief executive while a long term replacement is found.
Another company director, David Kerr has also resigned.
BlackBerry currently has a market value of around US$5 billion and also has some US$3 billion in cash and equivalents. The fresh funding will lift its cash to around $4 billion, giving whoever takes on the role of CEO more time to try and turn the company around.

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