 "BlackBerry set to go private in a $4.7 billion deal with group led by Fairfax Financial")
Close on the heels of BlackBerry pausing the global rollout of its BlackBerry Messenger app for iOS and Android, the company announced on Monday that it had signed a letter of intent with a group spearheaded by Fairfax Financial, hinting at a chance of a possible takeover. According to reports, the deal to take the Canadian company private is pegged to be around $4.7 billion.
As per the deal, BlackBerry shareholders will be eligible to receive $9 in cash for every single share of the company owned by them. Interestingly, Fairfax owns 10 percent of BlackBerry’s common shares currently. These will be contributed to the proposed transactions too.
Going private (Image credit: Reuters)
The deal, subject to due diligence, is supposed to be sealed by November 4, if it does take place. Doors have still been kept open for additional offers too. Fairfax Financial’s CEO Prem Watsa said in a statement, “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.”
Barbara Stymiest, Chair of BlackBerry’s Board of Directors said in a statement that a Special Committee within the company is seeking the best available outcome for BlackBerry’s constituents, including for shareholders. “Importantly, the go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal from the Fairfax consortium,” she said.
The news of a buyout seemed imminent considering the downward spiral BlackBerry was in for the past few years. The Canadian company had officially been open to the idea of a buyout since the past month. Only last week it was also revealed that BlackBerry intended to cut down on its staff strength by almost 40 percent and retreat from the consumer market, focusing instead on the enterprise market.
BlackBerry also faced a bit of a jolt this week while trying to release its much-awaited BlackBerry Messenger application for iOS and Android. Thanks to issues while rolling out the Android version of the app, the company completely halted the release of the app on both platforms and it now seems unlikely that the rollout will continue anytime soon.
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
 "Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?")
 "As Russia pushes east, Ukraine faces mounting pressure to defend its heartland")
 "Why Mossad was not on board with Israel’s strike on Hamas in Qatar")
 "Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe")
