Blackberry founder backs out of buying back his company

Blackberry founder backs out of buying back his company

Blackberry’s founder and former CEO, Michael Lazaridis, has decided not buy back the company. The Wall Street Journal has concluded this after Lazaridis reduced his part in the company to below 5 %.

Huge loss for Blackberry

Lazaridis had an 8 % share in Blackberry, together with Douglas Fregin, his partner when starting the company which was called Research in Motion back in the day. That has been reduced to 4.99 %, with Lazaridis now announcing he is no longer looking for a way to buy back the company with Fregin.

 

The news follows Blackberry’s quarterly loss of 4.4 billion dollars (3.2 billion euro), four times the loss from the quarter before, with turnover dropping another 56 %. The huge loss was the result of the write-off of its own supplies, mostly its new models which are barely selling (if at all).

 

Grim future

Blackberry has been for sale for a few months, but no one is currently willing to buy. A large shareholder, Fairfax Financial Holding, put a bid in, but was unable to finance the deal. It did however save the company with a billion dollar (730 million euro) loan.

 

Blackberry’s future is rather grim, with two models planned for 2014 already in the garbage bin.

 

 

 

(Translated by Gary Peeters)

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