Report Comment to a Moderator Our Moderators review all comments for abusive and offensive language, and ensure comments are from Verified Users only.
Please report a comment only if you feel it requires our urgent attention.
I understand, report it. Cancel

BlackBerry set for $4.7 billion buyout

By Matthew Handrahan

BlackBerry set for $4.7 billion buyout

Tue 24 Sep 2013 7:49am GMT / 3:49am EDT / 12:49am PDT

Consortium led by Fairfax Financial Holdings will pay $9 a share for ailing mobile company

A consortium of investors is set to acquire all shares in BlackBerry for $4.7 billion, making the struggling hardware company independent.

In a statement issued yesterday, BlackBerry outlined the terms of the deal as $9 a share, only slightly higher than the current market price of $8.82. The consortium is led by Fairfax Financial Holdings Ltd., which already owns 10 per cent of BlackBerry's stock.

The deal has been approved by the BlackBerry board of directors, and final terms of the deal will be finalised by November 4, 2013. However, Blackberry has formed a special committee that will assess "strategic alternatives" available to the company.

"We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees," said Fairfax CEO Prem Watsa. "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."

And BlackBerry is in dire need of a new solution. The company's struggle to reclaim its position as a force in mobile hardware has proved unsuccessful, with Apple and Google's hold on the market just as strong as ever.

Yesterday, the company revealed expectations of a $1 billion loss in the second quarter, largely due to its unpopular Z10 line of smartphones. It is also planning to make 4,500 people redundant, the second such round of layoffs in less than 18 months.

From Recommendations by Taboola


Jeff Kleist Writer, Marketing, Licensing

790 540 0.7
All the firm really wants is their patent portfolio and Blackberry mail. Th company is dead outside the enterprise space, and they're losing ground fast there

Posted:3 years ago


Nicholas Pantazis Senior Editor, VGChartz Ltd

1,025 1,486 1.4
I don't understand why anyone would spend $4.7 billion on Blackberry at this point. Their patent portfolio isn't even that good (they let Apple walk all over their smartphone patents) and as a device manufacturer they are completely worthless. Microsoft buying Nokia I get. This I do not.

Posted:3 years ago


Adam Campbell Producer, Hopster

1,472 1,576 1.1
Well it was a consortium led by those who had the biggest share of the company. With 50% of the staff and private status, they can better control the finances and fortunes of the company. I don't know if we're looking at the brightest future for this firm but its a better direction for them. Blackberry will likely move in a diretion geared more towards services but that's speculation.

Posted:3 years ago


Andrew Ihegbu Studying Bsc Commercial Music, University of Westminster

490 219 0.4
At least now they can hopefully actually get a decent leader now and start making some smart decisions. Sometime I think these CEOs are so out of touch with the men on the street that they just dont know what they are are doing.

Posted:3 years ago


Login or register to post

Take part in the GamesIndustry community

Register now