BlackBerry stock jumps as company confirms John Chen’s exit as CEO after 10 years

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Director Richard Lynch takes over on interim basis as company searches for replacement

BlackBerry Ltd. is looking for a new CEO after announcing the imminent departure of long-time leader John Chen, a move that was welcomed Monday by investors.

There was also a question of what role Mr. Chen – who earned a fixed US$3-million in salary and bonus per year - if any would occupy after BlackBerry spun off its profitable, fast-growing connected car in an expected initial public offering next year, or internet of things , business into a separate public company, from its slower growing, unprofitable cybersecurity unit.

It took BlackBerry six years to launch a proper competitive response. By then it was too late; hand-held sales kept plummeting. The company had also abandoned an alternative plan championed by Mr. Balsillie to bet on software and services instead of hardware, centred on its BBM mobile instant message service.

The company’s one-time saviour has otherwise delivered little payoff, leading to growing discontent among stakeholders. Under Mr. Chen, BlackBerry had become a hodgepodge of businesses, mostly picked up through acquisitions before and after he joined. It provides in-car software to connect vehicles to the internet.

 

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