BlackBerry Agrees to $4.7 Billion Buyout
This year has been buyout after buyout, and BlackBerry will be the next big one this year. BlackBerry today signed a letter of intent with Fairfax Financial Holdings Limited for Fairfax to purchase the failing company. The deal is for $9 a share or $4.7 billion for the whole company. Fairfax had already own 10% of the company, but now they’ll have full control to hopefully bring the company back. The shares were trading at $8.16 this morning, but after the news the stocks were trading for $8.65.
In a statement Fairfax CEO Prem Watsa said “We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees. We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world.”
The deal seems to be a go, but if BlackBerry will want to back out or take a better deal they’ll have to pay a termination fee. Now, what FairFax will do is unclear, but there are many rumours about what will happen. The rumour that keeps reoccurring is that the company will liquidate parts of the company to the highest bidder. Another talked-about option is licensing BlackBerry software, or developing hardware paired with other operating systems like Android.