According to ABC News
, the reason BlackBerry is abandoning its attempt to sell itself off is pretty bleak. “Potential investors must have looked at the books and didn't like what they saw,” analyst Colin Gillis said.
The largest shareholder in BlackBerry, Fairfax Financial Holdings, decided to seek investors to help it infuse $1 billion into the company rather than buy the company outright.
BlackBerry CEO Thorsten Heins will resign from his post, as will another member of the board, David Kerr.
BlackBerry’s Monday press release
presented all this as good news. Fairfax and the investors’ move is a sign that BlackBerry is a company worth backing, executives asserted.
“Today’s announcement represents a significant vote of confidence in BlackBerry and its future by this group of preeminent, long-term investors,” Barbara Stymiest, chairwoman of BlackBerry’s board, is quoted as saying.
Fairfax’s chairman and CEO, Prem Watsa, was similarly upbeat in his statement: “Fairfax is a long-time supporter, investor, and partner to BlackBerry and, with this investment, reinforces its deep commitment to the future success of this company.”
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The company’s new interim CEO and executive chairman of the board, John S. Chen, did acknowledge that it’s going to be difficult to turn the struggling company around.
“BlackBerry is an iconic brand with enormous potential—but it’s going to take time, discipline, and tough decisions to reclaim our success,” he said.