Another Jolt For BlackBerry Ltd (NASDAQ:BBRY) From Pfizer Inc. (NYSE:PFE)
Struggling Canadian smartphone maker BlackBerry Ltd (NASDAQ:BBRY) has faced yet another major setback, as world’s largest pharmaceutical company Pfizer has decided to move away from Blackberry. Pfizer Inc. (NYSE:PFE), which has a large influence in the pharma industry, has asked its employees to move away from Blackberry phones to other devices such as iOS or Android.
In a memo, the company announced this change saying “the transition was due to Blackberry’s “volatile-state” and asked employees to migrate to another device as contract expires.”
The drug-maker instead advised employees to choose an Apple Inc. (NASDAQ:AAPL) phone or phones that run on Google Inc (NASDAQ:GOOG)’s Android OS over Blackberry. Pfizer said the reason behind this development was because of Blackberry’s declining market share and that it even tried to sell itself. The company doubts whether Blackberry will be able to provide services in case it gets shut down.
As of its last annual filing, Pfizer is one of the largest employers in the U.S. with about 92,000 employees.
However, earlier this month Blackberry rejected the $4.7 billion takeover bid, leading to an immediate shakeup at the company. It rejected a takeover bid from Fairfax Capital after the latter could not raise funding. Also, Apple and Intel among others have been recruiting BlackBerry employees actively.
In-fact, former Chief Executive Officer of Sybase Inc. John S. Chen was named as BlackBerry’s new boss. And, the company also raised $1 billion in convertible debt to help boost its cash, which is almost dissapearing.
In a blog post, Chen assured investors that the company is looking towards the future, and not dwelling on the past. “This is a time of significant change at BlackBerry as we accelerate our efforts to transform our business.”
“I believe in the value of this brand. With the right team and right strategy in place, I am confident that we will rebuild BlackBerry for the benefit of all of our constituencies.”