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 Googleâ s (GOOG) Android smartphones. BlackBerryâ 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 BlackBerryâ 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 companyâ 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 Company releases expensive phone despite dire situation. BlackBerry Ltd chief John Chenâ s executive shakeup ends consumer era Chen confident in turning the company around. Other Stocks in the News J.C. Penney CEO invests $1M in company stock CEO Mike Ullman seems confident in his companyâ s stock. Wal-Mart steps up competition for holiday shopping Stores to offer deals at 6pm on Thanksgiving Day. Copyright 2013 by, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA, Inc.) or its employees responsible.

Published on Nov 26, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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