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Blackberry CEO Thorsten Heins out as $4.7bn Fairfax buyout falls through

Heins been
Mon Nov 04 2013, 14:09
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CANADIAN PHONE MAKER Blackberry's CEO Thorsten Heins announced his resignation from the company on Monday, as the firm announced that it has accepted a $1bn investment after a potential $4.7bn buyout fell through. 

Today was supposed to be a big day for Blackberry, but it looks like things haven't gone as planned. Fairfax Financial's $4.7bn buyout deal seems to have collapsed, with Blackberry instead announcing today that it has secured a $1bn investment from Fairfax and other "institutional investors" in a last ditch bid to prop up the company.

Fairfax Financial CEO Prem Watsa said, "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.

"I look forward to rejoining the Blackberry Board and to working with the other directors and management team, under John Chen's leadership, to shape the next stage of Blackberry's strategy and growth."

The firm also unexpectedly announced on Monday that Blackberry CEO Thorsten Heins is resigning from his position as head of the company. Former Sybase CEO John Chen, who has been appointed executive chair of Blackberry's board of directors, will take over as CEO temporarily while the firm searches for a new chief executive.

Chen said in a statement on Monday, "I am pleased to join a company with as much potential as Blackberry.

"Blackberry is an iconic brand with enormous potential - but it's going to take time, discipline and tough decisions to reclaim our success. I look forward to leading Blackberry in its turnaround and business model transformation for the benefit of all of its constituencies, including its customers, shareholders and employees."

The transaction is expected to be completed within the next two weeks, with the firms awaiting approval from the Toronto stock exchange.

In the wake of the news Blackberry's share price has already fallen more than 18 percent. µ

 

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