BlackBerry has dumped the hopes of finding a buyer, and instead pegged its future on a $1 billion cash infusion as it shook up top management Monday 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 announced it 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 one year on the job, and will be replaced on an interim basis by John Chen, a statement said.
“Today’s announcement represents a significant vote of confidence in BlackBerry and its future by this group of preeminent, long-term investors,” said Barbara Stymiest, chair of BlackBerry’s board.
BlackBerry had announced in August after a dismal year that it was looking for a suitor, among other strategic options.
Social network website Facebook, Chinese computer maker Lenovo and investment firm Cerberus backed by two BlackBerry founders as well as chip maker Qualcomm Inc. reportedly kicked the tires, but no deals were reached by Monday’s deadline.
Chen, a former head of the 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 who attended elite US universities reportedly foresaw the growth in mobile communications in the late 1990s, and positioned struggling database company Sybase as a leader selling business services in that market.
After turning Sybase around, he oversaw its sale to SAP AG for $5.8 billion, and joined SAP until his retirement earlier this year.
BlackBerry helped create a culture of mobile users glued to smartphones, but lost its luster as many have since moved to iPhones or devices using Google’s Android software.
