BlackBerry has reportedly said on Monday that it is going to get $1 billion investment through convertible bonds with thanks from Fairfax Financial Holdings Ltd. and other various potential investors. This latest acquisition will end a strategic review plan that will see the exit of CEO Thorsten Heins. The Canadian handset maker designed a scheme to sell its shares, resulting in an abrupt selloff in its shares in premarket trade. Shares slipped by almost 19%.
BlackBerry stated John S. Chen will take over as its new CEO of BlackBerry’s board, which will entitle him to be responsible for the company’s strategy. Chen was the chairman and CEO of Sybase Inc. previously, formed in 1998. Prem Watsa, chairman and CEO of Fairfax, will serve as lead director and head of the compensation, nomination and governance committee of BlackBerry Inc. Meanwhile Heins will make his departure from the firm by giving up his CEO post and from the board also. Chen will be acting as interim CEO then.
Meanwhile the social media giant, Facebook Inc’s revenue was absurd as its shares increased rapidly after tough earnings and revenues as well as decent outlook. The shares dropped instantly when the company announced that youth interest in the social website has minimized. But in spite of such robust earnings, the stock saw a phenomenal run with the existing value just a little below $50 per share.
Citi analyst Mark May claimed that the company’s stock can touch $70/share mark. One of the major growth engines would be the core CPMs. So far, the firm ads don’t have much difference as compared with others and May was optimistic about its improved condition with the passage of time.
He said that by considering a modest 2% 10-year eCPM CAGR would take the company to $339mn, $885mn and $1.6bn in incremental revenue in the CY14, CY15 and CY16, respectively.