BlackBerry has given up trying to sell itself and said its CEO is stepping down. BlackBerry named John Chen, credited with turning around Sybase in the late 1990s, as its interim CEO and executive chairman. Chen sees Blackberry as a nice fix-it-upper and thinks he can turn it around.
Shareholders disagree. Share prices fell 16 percent on the news. Word on the street is that Chen will have to find a rabbit to pull out of the hat really soon. The company had been trying to sell off all or part of itself for two months. Instead, it will raise $1 billion by issuing convertible notes to a group of long-term investors including its largest shareholder, Fairfax Financial Holdings.
The money will buy the company a little more time to come up with a cunning plan.