5 Nov 2013

BlackBerry Buyout Fails, CEO Thorsten Heins Ousted

Yesterday BlackBerry announced that the proposed $4.7 billion buyout for the company has fallen through. Yesterday was the final day that a consortium of interested buyers led by Fairfax Financial Holdings Limited had for due dilligence. The consortium has been unable to raise the cash for the proposed sale, and instead will be investing $1 billion in BlackBerry through a debenture. This new funding is expected to come through within the next two weeks.

“The BlackBerry Board conducted a thorough review of strategic alternatives and pursued the course of action that it concluded is in the best interests of BlackBerry and its constituents, including its shareholders,” said Barbara Stymiest, current chair of BlackBerry’s board of directors. “This financing provides an immediate cash injection on terms favorable to BlackBerry, enhancing our substantial cash position. Some of the most important customers in the world rely on BlackBerry and we are implementing the changes necessary to strengthen the company and ensure we remain a strong and innovative partner for their needs.”

When the funding deal concludes, current BlackBerry CEO Thorsten Heins will be out as CEO. Heins and fellow BlackBerry board member David Kerr are also expected to resign from the board at that time.

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