Blackberry CEO Thorsten Heins is on his way out as the company receives $1 billion in investor funds. Blackberry has seen some rough times as of late, though the company did recently release two new phones and launch their BBM service on popular devices. The new Blackberry funding will come from many financial institutions but mainly Fairfax. The company, formerly known as Research In Motion, have certainly struggled to adapt in today’s smartphone climate, though maybe these are the changes Blackberry needs.
Interim CEO John S. Chen will be taking the place of former Blackberry Thorsten Heins. Heins position as CEO was short lived, only being named Blackberry’s leader in 2012. Maybe Chen will be able to bring about the change Blackberry needs, even if its not the change they deserve right now.
Blackberry’s latest launch wasn’t a phone, as many would expect, but an app for iOS and Android. During Blackberry’s heyday, BBM was a way for Crackberry owners to communicate with each other without having to run into SMS limitations — i.e.: character limits, mms charges, etc. Even though nowadays we have a plethora of messaging options, back then it was one of the main reasons fans stayed with the Blackberry. While it may be a little too late, the company released their Blackberry messenger on iOS and Android. By now many have moved over to iMessage, Facebook Messenger, Google Hangouts, etc. though maybe RIM Blackberry can convince a some to go back to their platforms.
The deal was announced on Monday that Blackberry would receive $1 billion in funding from Faifax and others. Also announced was the company’s replacement of Thorsten Heins with John S. Chen. According to Yahoo Finance,
“Under the terms of the transaction, the Purchasers will subscribe for U.S. $1 billion aggregate principal amount of 6% unsecured subordinated convertible debentures (the “Debentures”) convertible into common shares of BlackBerry at a price of U.S. $10.00 per common share (the “Transaction”), a 28.7% premium to the closing price of BlackBerry common shares on November 1, 2013. The Debentures have a term of seven years. Based on the number of common shares currently outstanding, if all of the U.S. $1 billion of Debentures were converted, the common shares issued upon conversion would represent approximately 16% of the common shares outstanding after giving effect to the conversion.”
Blackberry certainly has had a rough time adjusting to the post-iPhone state of mobile phones. Some may say things are looking bleak for the company but Fairfax would say otherwise. With $1 Billion of funding now at their disposal, Blackberry may be able to put money towards a new project that will get them back in the game.
Are you a fan of Blackberry products? What do you think of Thorsten Heins leaving the company? Let us know in the comments!