Canadian government reportedly blocks Lenovo bid for BlackBerry
Because the Canadian government had made its position clear, BlackBerry never submitted any proposal to Ottawa that involved a Lenovo purchase of the company. BlackBerry operates a secure network that handles encrypted communications for the government and businesses, and there was concern that the Chinese government would be able to infiltrate the network using Lenovo as a front.
According to those inside the loop, Lenovo wanted very badly to buy BlackBerry and was prepared to pay the billions necessary to make the purchase. But BlackBerry could not afford to wait around for a security review which might have taken weeks if not months to complete, leaving the company essentially in limbo while the government decided the merits of a Lenovo buyout.
On Monday, a $9 a share, $4.7 billion bid for BlackBerry from its largest shareholder, fell apart. Instead, Fairfax Financial will buy $250 million of a $1 billion convertible debt offering that will help BlackBerry stay alive for now. As part of the negotiations involved, Thorsten Heins was removed as CEO and replaced by John Chen. But don't start up a collection for Heins just yet. Under the terms of his contract, he could be due $22 million from BlackBerry because of his departure from the company.
source: TheGlobeandMail via Crackberry
1. Doakie (Posts: 1305; Member since: 06 May 2009)
I wish I could be a CEO of a company in its death throws. These guys get fat paid.
2. Finalflash (Posts: 1873; Member since: 23 Jul 2013)
Yea....because the Chinese your sinking ships to hack into your pathetic security infrastructure.
3. apple4never (Posts: 970; Member since: 08 May 2013)
pathetic, probably not, even the us would have done it
4. noler (Posts: 187; Member since: 19 Aug 2013)
By his performance, I think Thorsten Heins should pay $22 billion to BlackBerry and not vice versa.
5. wrm2013 (Posts: 187; Member since: 28 Mar 2013)
Good for them. The Chinese are buying everything. More countries should stop being sell outs
9. cc3493 (Posts: 155; Member since: 06 Jul 2013)
sometime people dont have a choice. If a business is seriously ailing and about to collapse, theres not much they can do if they want to keep the company alive.
6. cripton805 (Posts: 972; Member since: 18 Mar 2012)
Lenovo would make awesome an awesome phone. I wish Blackberry would ditch their OS and instead use a modified more professional form of Windows OS. That would never happen. And I wouldnt get caught with a Windows phone with its current Playskool like OS in a professional setting.
7. applesucker (Posts: 81; Member since: 29 Oct 2013)
simply because the canadian government wants blackberry to be gone completely
10. microsoftnokiawin (Posts: 1011; Member since: 30 Mar 2012)
i think it's alot more complex then that
1. why would a government want a company in their country to die that would eat a bit of their the economy
2. this is about a country protecting it's infastructure of security and with china hacking everyone now a day why would they trust a chinese oem
3. if that was to happen they would have to rebuild their entire infastructure security once and why would they want to do that when the one they have now is working fine
11. deewinc (Posts: 166; Member since: 21 Feb 2013)
So governments are more afraid of China and its companies than PRISM ? ? ? Hilarious
12. microsoftnokiawin (Posts: 1011; Member since: 30 Mar 2012)
well they also probably rather prism have information then china !