Shares of BlackBerry plunged 16% in trading Monday after the company confirmed it will abandon plans for a sale as it struggles to gain momentum in the smartphone market.
In a statement, BlackBerry announced it will receive a
"BlackBerry is an iconic brand with enormous potential -- but it's going to take time, discipline and tough decisions to reclaim our success," Chen said in the statement. "I look forward to leading BlackBerry in its turnaround and business model transformation for the benefit of all of its constituencies, including its customers, shareholders and employees."
Before BlackBerry, Chen served as chairman and CEO of
"Putting a non-device person as an interim CEO is a clear sign that the devices business is not what matters anymore," says Gartner analyst
The announcement is the latest twist for the ailing smartphone maker as Apple,
In September, BlackBerry said it reached a tentative deal with Fairfax on a buyout valuing the company at
"Fairfax is a longtime supporter, investor and partner to BlackBerry and, with this investment, reinforces its deep commitment to the future success of this company," Watsa said in a statement.
BlackBerry has a tough battle ahead as it attempts to regain footing in the smartphone market. The company reported a second-quarter loss of
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