Thursday 23 May, 2019

Blackberry to abandon selling plans

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Blackberry, which hit headlines couple of weeks ago for that the Indian origin Prem Watsa buying the company has yet again found headlines now. Earlier, we also heard that Prem Watsa’s ‘Fairfax Financial’ will not be buying the struggling company. Instead we heard the plans of all other investors of the company including ‘Fairfax Financial’ instilling another $1 billion to reinvent the company.

As John Chen stepping in as the interim CEO over the stepping down Thorsten Heins, we heard that the company is going to have some significant changes in its plans. And among them, it is the shifting of ‘Blackberry’ to a more service sector oriented company, which is going to have deep impacts in the industry. Interim CEO John Chen highlighted the need for the company to concentrate more in the software sector as the company’s popular messaging application ‘Blackberry Messenger’ stormed in the last month in Google’s Android and Apple’s iOs platforms with downloading ticking more than 20 million and still going on strong.

And what in effect this could have in the industry is a total withdrawal of ‘Blackberry’ from the business of smart phones. John Chen’s words clearly emphasize the need for changing the shift to a more service oriented as he defined the position of the company not in phones, but instead on software for phones.

But, his plans has received mixed response upon then as many questioned the possibility of finding a success track on this path. And many still can’t believe the fact that a company like ‘Blackberry’ is struggling to compete with relatively newcomers in the industry so badly. The company’s recently launched ‘Blackberry 10’ creating little curiosity among in the industry, which is thriving on the backs of iPhone. And earlier this year ‘Blackberry’ management has decided to cut off their 40% workforce worldwide, as they reportedly suffered a quarterly loss of around $1 Billion.

And it was into this situation that Prem Watsa’s ‘Fairfax Financial’ submitting a proposal of $470 Billion to buy the company, though the capability of ‘Farifax Financial’ to do so remained under doubts.

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