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DigitalOlympus.com Comments on Blackberry’s Sales Cancellation and Plan to Replace CEO

Press Release   •   Dec 19, 2013 17:49 EST

On November 4 leading business news blog DigitalOlympus.com comments on recent news story by Allison Martell and Euan Rocha published on November 4 on reuters.com regarding  BlackBerry Ltd.’s decision to abort its plan to sell itself and rather will change its chief executive officer and generate about $1 billion from institutional investors, including its biggest shareholder, according to the smartphone producer on Monday.

The Reuters news indicates that in premarket trading, BlackBerry shares nosedive. The firm said it would generate the $1 billion with a private placement of convertible debentures. In addition, the company plans to assign John Chen as the executive chairman and interim CEO while the firm seeks a new leader. Chen is the former CEO of Sybase, a database software firm that SAP AG took over in 2010.

“The decision of BlackBerry to replace its CEO and abandon plans to sell its business may turn out to be a turning point for the firm,” says DigitalOlympus.com spokesperson. “But other firms willing to take such strategic step should consult business intelligence experts as such move could be a make or mar for any firm.”

In addition, the Reuters news story points that the biggest shareholder of BlackBerry, Fairfax Financial Holdings Ltd, will acquire $250 million of the debentures. According to BlackBerry, the subordinated debentures would be convertible into common shares at $10 and have a seven-year term.

In a statement following the report, Cole suggested that properly conducted asset recovery investigation could help BlackBerry find a long-lasting solution to its challenges.

The news story concludes by stating that “Fairfax announced a tentative $9-a-share offer for Waterloo, Ontario-based BlackBerry in late September. But Reuters said on Friday that Fairfax was struggling to finance the $4.7 billion bid.”


About DigitalOlympus.com

Digitalolympus.com is a news blog dedicated to educating its readers on the latest technology advances. They are committed to gathering information on up and coming technologies that will enhance the lives of their readership.