For the past few days, BBM has been all over the news. Now, BlackBerry has announced that it has agreed to a $4.7 billion buyout by a consortium of investors. BlackBerry said in a statement that it has "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."
Fairfax, a Canadian firm headed by billionaire Prem Watsa, is already BlackBerry's largest shareholder with approximately 10 percent of its shares. Watsa resigned from BlackBerry's board when it announced in August its intentions to search for a suitor.
Back is 2008, BlackBerry shares peaked above $148, when Blackberry was considered as primary choice by doctors, lawyers and businessmen. But yesterday, the share price was $8.42, indicating lack of faith from investors. Considering this situation, BlackBerry needed serious funds to keep stay afloat.
The deal is supposed to be closed till 4th November 2013, until that BlackBerry has a chance of seeking superior offers from other organizations. It’s a shock to know that mobile companies which were in boom just 5 years ago, are getting takeover by other organizations, since Nokia being takeover by Microsoft and Motorola by Google Last year.
Experts are saying that BlackBerry is seriously hit by other company products such as iPhone and Android based devices during the launch and lack of presence during launch event. The Z10 touchscreen device through which the company expected to come back was thudded badly at launch in January this year, hence loosing further grounds even in emerging markets.
On Friday 20th September, BlackBerry announced 4500 cut in jobs in order to stem losses. The Canadian company is also expected to lose $1 billion due to poor sales of newer smartphones and no Return on Investments. In August, BlackBerry announced possible sale and it has finally happened.