Blackberry Ltd Shares Drop As Takeover Deal Collapses
Blackberry has seen its market share gradually sliding as firms provide their workers with other smartphones and consumers turn to devices from other providers. The Blackberry shares drop was probably not a surprise to analysts and it doesn’t do the embattled firm any good at a time when they’re seeking a buyer.
The technology firm has now said that rather than an outright sale, they’ll raise $1billion through convertible debt issue but their causes hasn’t been helped by a nosedive in their share price which was caused by a market fully aware that there are no buyers for the firm.
There are always casualties in these situations and it seems that Blackberry’s chief exec Thorsten Heins will have to bite the bullet and resign from his role just 22 months after taking over. The interim CEO position will be filled by John Chen, who used to lead software company Sybase inc and served as advisor to private equity firm Silver Lake Partners. He will also take up the executive chairman role on the firm’s board of directors.
John Chen’s CV is an impressive one, so perhaps Blackberry will be in safe hands with him. He took struggling firm Sybase and turned it around, ending his tenure with a $6billion sale of the firm. Investors will be crossing their fingers and hoping and praying that he can do the same for Blackberry.
There are some potential buyers for the firm, but nothing more than rumours link Facebook, Cerberus and Qualcomm to the ailing firm which was once the dominant technology company. Over the years its market share has declined due to the popularity of devices from Apple Inc and other machines using Google’s free operating system. We can’t see Blackberry disappearing as a brand, but perhaps it will fade away as other technology brands like Nintendo and Nokia did after having their heyday.