Can John Chen Turn BlackBerry Around?

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Nov. 4 (Bloomberg) -- BlackBerry, coping with the collapse of a $4.7 billion buyout by Fairfax Financial Holdings, will raise $1 billion in convertible bonds and seek a new CEO for the struggling company. Cristina Alesci reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

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Christina, why couldn't blackberry seal a deal with fairfax when the head of fairfax is blackberry's biggest supporter?

He just wasn't convincing enough is what it comes down to, especially when it came to equity investors and even bankers on this deal shy add way.

They did not hear the conviction in the turnaround.

In fact, they didn't hear a turnaround strategy at all.

What the new deal is they managed to negotiate here is a billion dollar capital injection, effectively buying some time for the company to maybe turn itself around, bringing in new management, buying some time to spruce it up maybe down the line selling it for much higher price but reality is, the market is not factoring a deal in the short term.

We saw the stock tank today and that's because the market will be keenly focused on the cash position of the company.

Blast quarter we saw a drop in cash of about $500 million.

The market is now looking at whether or not blackberry could stay afloat long enough to really execute on this strategy and it's looking a little bit dire for them right now and that's part of the reason the company felt a little bit rushed to get a deal done, get something announced today.

Is there any word whether we can get another offer to take blackberry private?

I mean, i know a lot of names have been floated out there.

Any of these guys serious buyers?

Yeah, one name that you know for sure is lazz reedous.

He was teamed up -- lazz receiptous, cofounder of blackberry, teamed up with qualcomm on a joint bid and possibly canadian element which would have boded well but in a statement today we hear the company is ended its strategic review that.s0 means it won't be sharing information with any perspective buyers so it seems like a deal in the short term will be very difficult to pull off and this is not the kind of situation where want to go hostile because you need the information from the company to really put a value on it and assess the risks here.

And christina, blackberry we know is getting a new c.e.o. what do we know about john chen?

I know he's a turnaround guy.

But does he have what it takes, obviously a very difficult situation.

Look, he can it at sybase.

He came in with a company that was very -- struggling and that sold it for six times more than the company was worth when he came in.

So he has a trock record.

Keep in mind, emily, it took him ten years to do that, 10 or more to do that.

So it's going to be a long haul for blackberry if they're successful.

Definitely a challenge here.

First off, they have to stop the cash bleed.

They have to make sure that

This text has been automatically generated. It may not be 100% accurate.


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