BlackBerry goes private in $4.7 billion deal

BlackBerry goes private in $4.7 billion deal
Just days after announcing a $1 billion operating loss for the second quarter, BlackBerry has been sold to a group led by Fairfax Financial Holdings for $4.7 billion. The latter already owns 10% of the troubled manufacturer and is its largest shareholder. Current shareholders will receive $9 a share, a huge drop from the $150 that the stock traded at during 2007-2008 when the company's smartphones were a must-have in the business world. The shares are now up 1.43% on Monday to $8.85.

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.

The lack of a huge premium indicates that BlackBerry was in bad shape. The year started off with hope as the company launched its new BlackBerry 10 phones. A Super Bowl ad for the BlackBerry Z10 brought some attention to the company, but in the end Android and iOS and even Nokia's hard-charging Windows Phone platform, were too much for BlackBerry.

We have no idea about current management'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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20 Comments

1. D.Aceveda

Posts: 432; Member since: Jun 30, 2012

Maybe new owners will force BB to make new decisions

4. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Oh, there WILL be new decisions. I doubt that the present management team will like the decisions. I doubt that BB/RIM will be in the hardware business much longer.

11. james004

Posts: 486; Member since: May 15, 2013

they will sell their asset in pieces. but keep the name blackberry and BBM. Like nokia did with its name and Here map.

9. Mxyzptlk unregistered

Too late for that. That ship sunk a long time ago.

10. Mxyzptlk unregistered

And the constant delays of BB10 didn't really help much .

2. rihel_95

Posts: 305; Member since: Mar 21, 2012

what will happen to Z30?

3. roldefol

Posts: 4744; Member since: Jan 28, 2011

Perhaps we should ask the Nokia N9.

12. aldridhl

Posts: 76; Member since: Feb 12, 2011

hahaha

5. RaKithAPeiRiZ

Posts: 1488; Member since: Dec 29, 2011

any Z10 fire sale coming up?

6. GrapeEyes

Posts: 248; Member since: Sep 01, 2013

I can't wait when they bring out the BlackBerry B1.

7. Pdubb

Posts: 249; Member since: Aug 08, 2011

That would explain the delay in the bbm app perhaps?

8. aries.phills

Posts: 161; Member since: May 17, 2011

I'm of the same thought.

13. djripster

Posts: 141; Member since: Dec 10, 2011

BBM delay was blamed on the leaked APK files... Just noticed that BlackBerry Limited has been removed from the Play Store though

14. djripster

Posts: 141; Member since: Dec 10, 2011

Wish BlackBerry had just customized Android like Amazon... But I guess hardware requirements would have been much higher for their devices to make Android act like BB10

15. Martin_Cooper

Posts: 1774; Member since: Jul 30, 2013

Do people who bought BB realise that its almost impossible to get BB back on feet? Microsoft is spending BILLIONS each year, has NOKIA behind them, and they still cant take more than 10% market share after 2-3 years. Do they realise how much money they will have to spend just to make BB OS, app store, image of the company get back on feet? Its ridiculous. Android is going towards total domination of 80%+, iOS is doing ok being king of premium smartphones, WP8 is doing well slowly and steady. There is just no freaking room for a 4th OS especially from a company which is synonym with failure, crappy innovation and delusional CEO.

16. Pdubb

Posts: 249; Member since: Aug 08, 2011

We are going to see a plethora of new os platforms in the next few months. Firefox, Ubuntu, Jolla and etc so time will tell if it will be money or just innovation that will propel the next OS.

17. wrm2013

Posts: 234; Member since: Mar 28, 2013

Convert to android, still use the swiping of os10, call it blackdroid, keep the form factor of the q10 with a larger screen and it will do well.

18. rusticguy

Posts: 2828; Member since: Aug 11, 2012

How much of a bounty does the Z10/Z30 CEO get?

19. Q1Q10

Posts: 20; Member since: Mar 08, 2013

So does that mean that no more updates to the os10 software, no more apps, never getting instagram, seems like a ton of people were just screwed over, luckily i have my lumia 920

20. profperez1

Posts: 76; Member since: May 08, 2012

I understand many people think it shouldn't go Android----but I don't see any choice now. I might dual boot. But most developers don't want to invest in this---and I don't blame them. They say they have 140,000 APPS----but 70,000 are owned by one company and are just sooped up databases. I don't think it workable.

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