Black day for BlackBerry

Written By Unknown on Selasa, 05 November 2013 | 12.33

Shares of BlackBerry plunged yesterday on news that its $4.7 million buyout was off and that its chief executive was out — leaving an opening for Microsoft to fill behind Google and Apple in the race for smartphone stardom.

BlackBerry's stock tumbled by more than 16 percent to $6.49 on the Nasdaq stock exchange after the announcement that a preliminary deal with Fairfax Financial Holdings had fallen through and that Chief Executive Thorsten Heins was being replaced by John S. Chen, former CEO of Sybase Inc., until BlackBerry finds a permanent replacement.

Fairfax will now lead a $1 billion investment in the embattled Canadian company, but analysts are not optimistic about its future.

"I see this as the beginning of the end of Blackberry," said N. Venkat Venkatraman, professor of management at Boston University. "It tried multiple options, including possible interest from Facebook. Finally no one stepped up ... and that itself says something profound: No one saw any value that could be unlocked easily either through financial engineering or a longer term strategic road map to revive BlackBerry."

BlackBerry had been locked in an intense competition for third place behind Google and Apple in the smartphone wars.

"But they've been a day late and a dollar short in every innovation," said Max Wolff, chief economist and strategist for ZT Wealth in New York. "Their bungling has allowed Google and Apple to own the space, and the No. 3 role has gone to Microsoft's Windows phone."


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