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September 24, 2013

BlackBerry to be sold off but, to whom?

BLACKBERRY-Q10_WHITE_1

How times have changed. Back in 2007/8 Blackberry shares were trading at $150 (£95) now you’ll be lucky to get $9, in fact yesterday (Monday) they were trading at $8.85!

Just days after announcing a $1 billion operating loss for the second quarter,Fairfax Financial Holdings have offered $4.7 billion for the company. Fairfax Financial Holdings not only the  largest shareholder but owns 10% of the troubled manufacturer. Current shareholders will receive $9 a share.

The deal is expected to close on November 4th pending all regulatory approvals. BlackBerry’s board “approved the terms of the letter of intent,” and investment banks like Merrill Lynch and BMO Capital Markets are involved in the transaction. The deal puts a value of $4.7 billion on the floundering company.

Yesterday (Monday), the company announced that it had:

“Signed a letter of intent agreement under which a consortium to be led by Fairfax Financial Holdings Limited has offered to acquire the company subject to due diligence”. Diligence is expected to be complete by November 4, 2013. The parties’ intention is to negotiate and execute a definitive transaction agreement by such date.”

However, Blackberry said it was not in exclusive talks with Fairfax and would continue to

“actively solicit, receive, evaluate and potentially enter into negotiations”

with other potential buyers.

We have no idea about current employee’s fate in the transaction. As soon as more details become available, we will update this story, so keep checking in!

Source: WSJ

 

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Dave Thornton

Senior Editor

Senior Editor
Been involved in technology for many years, more than I care to remember. Live in Dundee, Scotland. I like Android, Windows Phone OS, BlackBerry OS and iOS, and love writing about all things techie. Currently have a Honor 6+, Elephone P6000, Nexus 5, Chrombook C720, HTC One M7, Nokia Lumina 625, Microsoft Lumia 435, Blackberry Q10, HTC Hero and iPad mini