Tomahawk, WI 01/09/2014 (BasicsMedia) – Blackberry Ltd (NASDAQ:BBRY)’s turnaround efforts received a big boost this week when its top investor put another $250 million in the company. This new investment by Fairfax also comes as a vote of confidence in BBRY’s interim CEO John Chen.

The $250 million investment comes through debt purchase, following another purchase of similar amount in November during which Blackberry Ltd (NASDAQ:BBRY) raised $1 billion for its ongoing turnaround.

Note that Fairfax had previously attempted to take Blackberry Ltd (NASDAQ:BBRY) private when the company offered itself for sale. Fairfax, investment and insurance company offered to buy the struggling smartphone maker for $4.7 billion but failed to raise the amount. Following this development, an agreement was reached to help the company through recovery. As part of this agreement, Mr. Chen was brought in to lead the turnaround and issued with $1 billion to get things going.

Mr. Chen was considered fit for Blackberry Ltd (NASDAQ:BBRY) recovery efforts following his success at Sybase which had almost the same problem as Blackberry Ltd (NASDAQ:BBRY) today. In the capacity of chief executive, Mr. Chen has brought in some of his colleagues at Sybase to help in the turnaround efforts.

New approach

So far, Blackberry Ltd (NASDAQ:BBRY) is largely on course. The company is breaking away from management policies which almost caused its downfall and it is now crafting new strategies. Among the strategies being employed to get the company back on its feet include focus on its other businesses besides smartphone manufacturing.

In this regard, the company is boosting its mobile security arm given that this segment still has a lot of untapped opportunities. Things have already started taking the right direction in this segment as can be seen in the recent announced by Pentagon to switch its mobile communication platform from other providers to that offered by Blackberry Ltd (NASDAQ:BBRY).

And at the ongoing International CES, the company announced place to set up a security center in Washington DC. Moreover, the company plans further collaboration with governments and organizations around the world to expand the market of its mobile security products.

Besides mobile security, the company is also intensifying its technology portfolio development. Note that Blackberry Ltd (NASDAQ:BBRY) is one of the tech companies with the riches patent portfolio. The company believes that it can earn incremental revenue from its patent licensing and this is one area that the management has a lot of optimism. The success of this segment depends on the talents which the company has. And to answer this concern, Blackberry Ltd (NASDAQ:BBRY) recently hired a senior executive who previously worked with HTC America and Sony Ericsson to head its devices and products solutions division.

Yet another promising line that Blackberry Ltd (NASDAQ:BBRY) is pursuing is the mobile massaging platform. The company can be seen expanding the adoption of BBM. The latest available data show that download of the app was high in 2013 and it is expected to grow even popular this year as it becomes clear that Blackberry Ltd (NASDAQ:BBRY) is not going to the dogs as had been feared.

In order to stay safe from inventory stress, Blackberry Ltd (NASDAQ:BBRY) has assigned a five-year manufacturing deal with Foxconn Technology Group. This outsourcing agreement takes the smartphone manufacturing business to Foxconn, which essentially means that Blackberry Ltd (NASDAQ:BBRY) will not have to worry about upfront manufacturing cost or poor inventory sales.


For now there are good reasons why an investor would want to add Blackberry Ltd (NASDAQ:BBRY) to investment portfolio. And this should be done when the stock is still cheap.

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