The consortium has offered $4.7B dollars for the once dominant smartphone manufacturer
To be honest with everyone, this one took me by surprise. If you didn’t know Blackberry was looking for a buyer, you were likely living under a rock. I thought this might come eventually, but not as quickly as it did.
This story is developing, so you should watch Soft32 for updates to this over the next few days. I’ll try to have something on this as developments occur. In short, though, a consortium, led by Canada’s Fairfax Financial Holdings, has offered $4.7B in cash for the once dominant smartphone manufacturer. The deal is supported by Blackberry’s Board of Directors. (honestly, I’d be surprised if it wasn’t).
Fairfax is said to currently own 10% of Blackberry now. Their all cash offer would acquire the remaining 90% of outstanding shares at $9 per share. When the offer was announced, BBRY was trading at about 8.25. The company’s stock closed at 8.76, after peaking at 9.01.
The deal, outlined in a letter of intent, gives Fairfax and Blackberry until 2013-11-04 to complete Due Diligence. During this time, Blackberry can continue to shop the company for a better offer.
Blackberry has decided to abandon their pursuit of the consumer market and will instead concentrate on the enterprise. However, this won’t save the currently 4500 employees worldwide that are currently targeted in a downsizing. In foregoing the consumer market and concentrating on the enterprise, its thought that Blackberry can retain what value it currently has, despite its $1B charge against unsold Z10 smartphones and a drop to number 4, behind Windows Phone, in the smartphone market.
We’ll have to wait and see.
This story is currently developing and I’ll have more on this as the facts come to light. I’ll also have some personal insight after I have a chance to digest all of the facts. As it stands, there’s a lot going on here, and the entire tale has yet to be told.
Stay tuned to Soft32 for more.
I have a concern about this, as it seems like a little too late to make much of a difference…