Blackberry Acquisition Falls Through

Nov 04, 2013

For Blackberry, the hits just keep coming. The Canadian company had been planning on being purchased by Fairfax Financial Holdings, Blackberry's largest shareholder. But the deal fell through, and Fairfax will, instead, be investing a billion dollars in Blackberry. In addition, CEO of Blackberry Thorsten Heins will step down in the wake of the crumbling deal. The news caused share prices to drop.

John Chen, former CEO of Sybase, will step into the CEO slot at Blackberry. "BlackBerry's new investors seem to see its future in software, which means using BlackBerry servers as the core of a broader enterprise device management platform, but this generates very little revenue for the company today," said Ovum's Chief Telecoms analyst, Jan Dawson in a statement. "Though it's achieved some traction with enterprises upgrading their BlackBerry servers, it has failed to sell many BlackBerry 10 devices, and this looks unlikely to change. This ultimately harms the unique selling point of BlackBerry server products leaving the door open to replacement by rivals that are better able to support the more popular Apple and Android devices."