" Blackberry is seeking alternative ways to raise funds for its dwindling business rather than the planned sell off of the company at $4.5bn"
Blackberry has abandoned a plan to sell itself to its biggest shareholder, Fairfax Financial Holdings.
Instead, the struggling maker of smartphones intends to raise $1bn (£627m) in fresh financing.
Chief executive Thorsten Heins will step down and former Sybase chief executive John Chen will serve as interim chief executive, the BBC reports.
Last month, Blackberry reported a second-quarter net loss of $965m.
Those losses were blamed on poor sales of its new smartphone, the Z10.
‘Substantial cash’
Fairfax was planning to lead a consortium of firms in a takeover of Blackberry worth $4.7bn.
But that plan, announced last month, has fallen through.
Last week, Reuters reported that Fairfax was struggling to raise the financing needed for the deal.
Instead, Fairfax, which owns a 10% stake in Blackberry, is contributing $250m to the new fund-raising.
“This financing provides an immediate cash injection on terms favourable to Blackberry, enhancing our substantial cash position,” said Barbara Stymiest, chair of Blackberry’s board of directors.
In September, the company announced a plan to cut 4,500 jobs, or 40% of its workforce, to reverse giant losses.
The interim chief executive, John Chen, acknowledged the challenge ahead: “Blackberry is an iconic brand with enormous potential – but it’s going to take time, discipline and tough decisions to reclaim our success.
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