Monday, 4 November 2013
Blackberry deal is off. Shares start to tank again. The death spiral?
Uh oh, the Blackberry Sale has fallen through.
And its shares are tanking. Again.
It had hoped to sell itself to its biggest shareholder (holding 10%), Fairfax, whom were rumoured to have found difficulty in raising the finance for it. Blackberry is now looking to raise 1 billion usd elsewhere and CEO Thorsten Heins has stepped aside.
Although Fairfax have structured a financial 7 year deal to support the company, it won't be seen as enough.
Blackberry have already planned to cut 4,500 jobs, 40% of their work force.
Last month they reported a quarterly loss of nearly 1 billion usd but are sitting on cash of more than 1 billion which will get them through...for a while (another quarter loss like last quarter will do it).
One would expect though, that shares will plummet tomorrow.
And this is now, probably the start of what last year was termed, The Blackberry Death Spiral.