BlackBerry (BBRY) Execs Leave in Management Shakeup
Shares of the Blackberry Ltd (BBRY) closed up +0.01 or +0.16 percent to $6.25 per share on Monday, after the company announced the departure of its Chief Financial Officer, Chief Operating Officer and the Chief Marketing Officer as the company rebuilds management. The company also announced the resignation of board member Roger Martin, who was on the board since 2007. John Chen, former Sybase CEO, assumed the position of Chief Executive Officer on November 4th, immediately after Fairfax Financial Holdings Ltd failed to take over BlackBerry for $4.7 billion.
Chen plans to rebuild BlackBerry, moving away from consumer business, making a smaller, more innovative firm.
Waterloo, Ontario based BlackBerry Ltd, formerly known as Research In Motion, is a Canadian manufacturer of telecommunication equipment best known for making the BlackBerry brand of smartphones and tablets. The company has lost considerable market share in the smartphone market mainly due to heated competition from Appleâ s (AAPL
) iPhone and GoogleÃƒÂ¢ s (GOOG
) Android smartphones. BlackBerryÃƒÂ¢ s market share went from 43% of the U.S. market in 2010, to 3.8% in 2013. Chief Financial Officer Brian Bidulka will be replaced by former controller and head of compliance, John Yersh. Bidulka, who worked for the company for eight years, will be retained as special advisor assisting with the transition for the rest of BlackBerryÃƒÂ¢ s fiscal year. No replacements have been announced so far for Chief Operating Officer Kristian Tear, or Chief Marketing Officer Frank Boulben, both hired by ousted CEO Thorsten Heins in May of 2012. CEO Chen stated in a press release, "I thank Kristian and Frank for their efforts on behalf of BlackBerry. I look forward to working more directly with the talented teams of engineers, and the sales and marketing teams around the world to facilitate the BlackBerry turn-around and to drive innovation," Chen continued, "I also thank Brian for his eight years of dedicated service to BlackBerry. I look forward to working with James and his Finance team as we move forward, execute on our plans and deliver long-term value for our shareholders." Chen replaced Thorsten Heins as CEO earlier this month. BlackBerry has had a number of setbacks, including the failed takeover by Fairfax Holdings Ltd and other investors for $4.7 billion. The company instead opted for $1 billion in funding from Fairfax in the form of a convertible bond issue, giving Chen more leeway as he plans the companyÃƒÂ¢ s comeback. The company also failed to deliver with their new flagship phone, the Z10 earlier this year. The product was not introduced in the United States until months after its release in Canada and the UK, forcing BlackBerry to take a charge of $934 million to write down its unsold inventory. With the current market in smartphones clearly favoring Apple and Google, BlackBerry currently has about $2-$3 billion worth of patents that give its stock some intrinsic value, which continue making the company a prime takeover candidate. BlackBerry stock is off 95 percent from its high in 2008. Other News About Blackberry BlackBerry Porsche Design P9982: A $2,350 Version of an Unsuccessful Phone
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Published on Nov 26, 2013
By Jay Hawk