"This feels a lot like a desperation [move]," CNBC's Jim Cramer said.
In September, BlackBerry agreed in principle to be acquired by Fairfax, a Canadian insurance company, for $9 a share in a deal worth $4.7 billion in U.S. dollars. Yet since then, several suitors have come forward with alternative bids.
(Read more: Here's why BlackBerry deal may be a fake out)
The latest chapter in BlackBerry's history is a stunning turnabout for a company that pioneered the smartphone, before getting displaced by current giants Apple and Samsung.
Since the iPhone and Galaxy have taken hold of the public's imagination, they have become the gold standard of mobile devices, and left BlackBerry in the dust. According to ABI Research, BlackBerry's global market share extended its death spiral in the latest quarter, dwindling to less than 2 percent of all new smartphone shipments.
The company has lost about $79 billion in market cap value since the stock hit a record of $148 in June 2008. Its market cap is now only $4 billion, a mere fraction of the $83.6 billion it enjoyed back in its heyday and a 95 percent drop in five years.
More recently BlackBerry announced a plan to lay off 4,500 workers, in the wake of being forced to swallow a nearly $1 billion charge against unsold BlackBerry 10 devices.
Early indications show investors giving the move the thumbs-down on the latest move: In trading on the Nasdaq stock market, the company's shares plummeted by nearly 17 percent, pinned under $7.
—By CNBC's Javier David. Giovanny Moreano contributed to this report.