BlackBerry abandons deal; CEO Thorsten Heins fired

Image by Shannon Stapleton via the Star

In a shocking turn of events, BlackBerry Ltd. is abandoning a proposed sale to Fairfax, andwill instead raise about $1 billion from investors, while replacing its CEO. ¹

As part of the new agreement, former Sybase AG CEO John Chen will assume BlackBerry’s top position.

Reaction was mixed within the BlackBerry community, with Chairwoman Barbara Stymiest saying “today’s announcement represents a significant vote of confidence in BlackBerry” and that the “pursued the course of action… is in the best interest of BlackBerry and its constituents, including its shareholders”. ¹ Others such as Fairfax CEO Prem Watsa were apprehensive towards BlackBerry’s decision, as Heins stands to make as much as $55.6 million under the change of control provisions in his contract. ²

It has yet to be determined if BlackBerry is pursuing the right strategies for its long-term success. Blackberry has consistently failed to market its newly improved product portfolio. As evidenced in Colleyna’s blog post, it is imperative that a company successfully markets its brand image, while capitalizing on its strengths and opportunities while avoiding its weaknesses and threats.

Thus, uncertainty is certain for BlackBerry’s imminent future. Despite this ambiguity, BlackBerry’s radical turn of events is sure to lead to an immense culture change, whiledeterring employees’ affective commitment and confidence toward the leaders of the struggling company.

Sources:

¹http://www.thestar.com/business/2013/11/04/blackberry_abandons_sale_ceo_thorsten_heins_out.html

²http://o.canada.com/business/blackberry-ceo-stands-to-receive-55-million/