BlackBerry abandon sell-off plan, continue to limp on

BlackBerry abandon sell off plan, continue to limp on

A planned sell-off to the largest Blackberry shareholder, Fairfax Financial Holdings, has today been dropped after failing to reach an agreement. The company are instead looking to raise $1 billion (some £627 million) in financing in order to continue operating.

The company has a Q2 loss of almost $1 billion, so if that trend has continued then these additional funds will only fill the hole. Chief exec, Thorsten Heins, is to step down as the $4.7 billion sale to a consortium headed up by Fairfax collapses. Fairfox will instead front-up $250 million of the $1 billion that BlackBerry is looking for.

Barbara Stymiest from Blackberry stated…

This financing provides an immediate cash injection on terms favourable to Blackberry, enhancing our substantial cash position.