Scrapping plans to sell itself off, Blackberry Ltd. announced this week that it has fired its CEO and plans to stay afloat by raising $1 billion from a collection of investors – which apparently includes Qatar Holding.
According to Reuters, which cites a source familiar with the matter, Qatar’s sovereign wealth fund has bought some $200 million of the offering, while BB’s largest shareholder, Fairfax Financial Holding, has invested $250 million.
Under the convertible debt offering, investors could opt to convert their loan (which would be paid back with interest) into a stake in BB.
Canada-based Blackberry, while popular among many Qatar residents, has been struggling financially in recent months due to eroding market share from services like WhatsApp.
However, the company did see a surge in interest last month after the (delayed) launch of the Blackberry Messenger (BBM) on Android and Apple iOS phones, attracting 20 million users in the first week.
Despite the surge in interest, its stock continues to drop, as uncertainty over new leadership looms over the company.
Thoughts?