BlackBerry scraps search for buyer

Research in Motion CEO Thorsten Heins unveils the BlackBerry 10 mobile platform as well as two new devices in this January 30, 2013 file photo at the New York City Launch at Pier 36. BlackBerry CEO Thorsten Heins is reportedly being pushed out along with several board members as BlackBerry abandons its buyout plans and raises a new round of funding instead. BlackBerry on November 4, 2013 abandoned hopes of finding a buyer, and instead pegged its future on a $1 billion cash infusion and new management, after the departure of its chief executive. PHOTO/AFP 

In Summary

• BlackBerry chief executive Thorsten Heins meanwhile will step down after only 22 months on the job, and will be replaced on an interim basis by long time technology executive John Chen, a statement said yesterday.
• Social network Facebook, Chinese computer maker Lenovo and investment firm Cerberus backed by two BlackBerry founders as well as chip maker Qualcomm reportedly kicked the tyres, but no deals were reached by Monday’s deadline.

By AFP
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OTTAWA,

BlackBerry abandoned hopes of finding a buyer and instead pegged its future on a $1 billion cash infusion as it shook up top management and named a new chief executive.

The Waterloo, Ontario-based company’s announcement comes two-and-a-half months after its largest shareholder Fairfax Financial Holdings Inc offered to buy the rest of the business and take it private.

Fairfax instead will invest $1 billion in a private placement, and Fairfax boss Prem Watsa will become lead director of BlackBerry.

BlackBerry chief executive Thorsten Heins meanwhile will step down after only 22 months on the job, and will be replaced on an interim basis by long time technology executive John Chen, a statement said yesterday.

“Today’s announcement represents a significant vote of confidence in BlackBerry and its future by this group of preeminent, long-term investors,” BlackBerry’s board chairperson Barbara Stymiest said.

BlackBerry had announced in August after a dismal year that it was looking for a suitor, among other strategic options.

“Today’s announcement marks the conclusion of the review of strategic alternatives,” the firm said.

Social network Facebook, Chinese computer maker Lenovo and investment firm Cerberus backed by two BlackBerry founders as well as chip maker Qualcomm reportedly kicked the tyres, but no deals were reached by Monday’s deadline.

Chen, a former head of software firm Sybase, said he looked forward to steering BlackBerry through its “turnaround and business model transformation,” but asked for patience.

“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.

The son of poor Hong Kong refugees, Chen attended elite American universities and reportedly foresaw the growth in mobile communications in the late 1990s.