Back in September, BlackBerry announced that it was up for sale. A few weeks later, the news broke that Fairfax, one of BlackBerry’s existing shareholders, was interested in buying the troubled smartphone maker for the sum of $4.7 billion, depending on a number of factors. According to reports, BlackBerry has also since approached a handful of possible buyers.
Yesterday, however, the news was broken that BlackBerry was no longer up for sale. Apparently, Fairfax was unable to raise the cash. So, what has happened is that Fairfax and other investors will inject $1 billion into the company and attempt to chart a new course for it. Part of the deal is that CEO, Thorsten Heins, be replaced. John S. Chen, who has “outstanding track record” of pulling struggling companies back from the valley of the shadow of death, will run the company till further notice. Apparently, Lenovo didn’t push further with their interest in BlackBerry due to the Canadian authorities disapproval of the company falling into the hands of the Chinese.
The new CEO has already stated that BlackBerry will continue to manufacture mobile devices, so we can expect new phones. Cross-platform BBM has taken off well and if sustained and harnessed in some way, can be a bright light in the company’s fortunes.
The question on everyone’s lips is, “Can BlackBerry be saved?” The answer will vary depending on who you ask. Turnarounds have been executed successfully again and again, so it is possible. Again, we can only wait to see how this turns out.
You can read more on this development: BlackBerry financing aims for a new lease on life.