BlackBerry privatization bid fails, Thorsten Heins out as CEO
But, today's deadline for Fairfax Financial to officially put in a bid has passed because apparently Fairfax couldn't find the partners necessary to finalize the deal; and, now we're learning that the plans are changing. It turns out that rather than purchase the failing company stock to privatize, Fairfax is going to lead a group of investors which will supply BlackBerry with a $1 billion investment. Fairfax will supply $250 million of the investment, which will come in the form of a debt sale.
Also part of the new plan is to remove Thorsten Heins as CEO and make some changes to the BlackBerry board of directors. Heins has only been CEO since the beginning of 2012, and his time has not inspired confidence even with the launch of BlackBerry 10. The $1 billion investment should be completed within the next two weeks at which point Heins will be out and John Chen will take over as interim CEO and executive chairman of the board. Current BlackBerry chair Barbara Stymiest said of the new plan: