BlackBerry has a new CEO and a new strategy and is ending its one-year partnership with musician and singer Alicia Keys, who had served as a global creative director for the company in a bid to spark demand for its BlackBerry 10 platform and phones.
BlackBerry's board does not think breaking up the company into separate pieces is a sound idea, even though Apple, Microsoft, Lenovo and others have expressed interest in parts of the company, according to a Reuters report.
BlackBerry is turning to former Sybase CEO John Chen to turn around its struggling business as its interim CEO, and will be banking on his history as a turnaround specialist. However, despite his background, Chen faces formidable challenges in reviving BlackBerry, analysts say.
BlackBerry announced it halted its plans to go private in a $4.7 billion deal led by Fairfax Financial Holdings, its largest shareholder, and will instead receive a $1 billion capital injection form Fairfax and other institutional investors. BlackBerry also effectively ousted CEO Thorsten Heins.
Today is Halloween, so it's time to pull out your costumes, light up your jack-o-lanterns, turn on a horror movie or two--and of course, go trick-or-treating (either by yourself or… with your kids). It's also time to take a light-hearted break from the third-quarter earnings season rush: Just like we did in 2012 and 2011, FierceWireless in 2013 has taken a look inside the minds of some of the industry's top executives to see what really scares them. These nightmares are scenarios that could plausibly come to pass within the next year.
BlackBerry is trying to save itself by going private in a $4.7 billion deal. However, the road that has led up to this moment in the company's history was paved by splits between board members, poor production execution, especially after BlackBerry purchased QNX in 2010, and a failure to keep up with the changes in the smartphone market, according to an in-depth investigation by The Globe and Mail.
As it had warned, BlackBerry posted dismal quarterly results for its fiscal second quarter, including a $965 million loss. The company warned about the results last Friday and on Monday said it had struck an initial and tentative $4.7 billion deal to go private.
BlackBerry said it will cut 4,500 jobs, or 40 percent of its workforce, and previewed extremely weak quarterly results ahead of its next earnings announcement, which is due Sept. 27.
BlackBerry, as it considers various strategic options, including a possible sale, has been banking on strong sales of its BlackBerry 10 smartphones to help revive the company's fortunes. However, according to a report in the Wall Street Journal, sales of one of the company's flagship products, the Q10 with the firm's iconic physical keyboard, are in the gutter.
BlackBerry CEO Thorsten Heins could make as much as $55.6 million if the company is sold and he is ousted as the chief in any ownership change.