BlackBerry agrees to sell to Fairfax for $4.7 billion

Well it has just about happened. Blackberry has announced it's accepted a $4.7 billion offer from Fairfax Financial Holdings for itself, about a month after the company's board announced it was considering a sale.

Fairfax, which already had a 10 percent stake in the BlackBerry's shares, will pay $9 per share in the former smartphone giant, adding up to the aforementioned $4.7 billion. Under Fairfax, BlackBerry will be a private company, as it had been considering last month. BlackBerry is signing a letter of intent to confirm the preliminary deal.

While Fairfax hasn't announced what it plans on doing with BlackBerry once the deal is completed, Chairman and CEO Prem Watsa served up some optimism.

"We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees," he stated. "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."

Last week a report claimed BlackBerry confirmed it will cut 4,500 jobs, so it seems like this buyout will ultimately prove to be a wise decision. BlackBerry has suffered through quite a bit over the past few years while failing to stay relevant in the smartphone and tablet market, so it'll be interesting to see what the future has to hold.

Source: TechnoBuffalo

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44 Comments

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este said,
d'oh...... so what does this mean for me as a user who just bought a Blackberry Q10 on Sprint? lol....

It means the same as before ... you're on your own

Blackberry have beenvery poor for the last few years. They released their new phone, which I thought was alright but massively poor sales.

They didn't keep up with times of Smartphones, maybe one day they'll come back and be another Nokia

I would like that this happen to IE.

Imagine that Google offer to MS to buy IE and then just destroy it. hehehehhee of course with a contract to allow MS to never build a browser EVER.

^Such a dumb thing to say.

I use Chrome as my default browser but that doesn't mean, I would wish IE or Firefox to disappear completely. I want them to be around, compete with one another and in turn we always win. What's wrong with that?

BB going down wasn't a good thing but sucks that it did.

Most people believe that the Blackberry company isn't worth $1 billion at this point as they were just a time bomb waiting to explode. I believe Blackberry as a brand could bounce back only if they decided to ditch BB10 and go Android and become another company like HTC.

(V)eGa said,
Most people believe that the Blackberry company isn't worth $1 billion at this point as they were just a time bomb waiting to explode. I believe Blackberry as a brand could bounce back only if they decided to ditch BB10 and go Android and become another company like HTC.
FALSE...Unlike Nokia who actually makes some pretty unique devices, which if they ran Android would have made them more successful especially the Lumia with the 41MP camera, but Blackberry wouldn't have had the same success. Not even close.

CygnusOrion said,
Oh boy, this is sad. It's like the day when Microsoft will sell itself off to Value Act in 2027.

Microsoft isn't a failing business. Try again.

Good to see it. Sucks to see BB dying though. If only MSFT bought em and basically merged BB security, BBM, and other good things from BBOS into WP it be great.

I don't think so. I think MS could have positioned the BB products for their business offerings and the Nokia for their consumer. I have an Android, BB10, and a WP8 phone, and the BB10 is way ahead as far as message handling.

MS needed a good brand, and a decent geo-location service to compete with google. Nokia had it all, I don't think BB was any good for MS because MS already has corporate environment with bitlocker, exchange and office integration. and Skype for communication.

trojan_market said,
MS needed a good brand, and a decent geo-location service to compete with google. Nokia had it all, I don't think BB was any good for MS because MS already has corporate environment with bitlocker, exchange and office integration. and Skype for communication.

I have a WP8 (among others), and it's nowhere near the messaging solution of the BB10. Their OS really stands out for that business function.

vcfan said,
apple made more money in sales in a few days than what blackberry as a company sold for.

Sic transit gloria mundi...... (Thus passes the glory of the world)
Every company has its days of glory..... I remember a time when BB and MS dominated the smartphone market and Apple and Android did not exist at all

well apple deserved it because of the Steve Jobs Vision. I can clearly remember those days that everybody was making fun of apple (original iphone) that it was a joke and will be a toy. look at it now. android just stole the wave I guess.

Spicoli said,
Who exactly is everybody? Strawman argument?

microsoft and blackberry, specifically. and looks how big a piece of market share pie they are owning now.

Why is it sad? Private equity could be exactly what they need. No need to live quarter to quarter anymore. It all depends on what they plan to do with it. It could be anything from repositioning the products to hacking it up and selling the patents.

trihawk7 said,
If you think it Bill Gates could have bought them out 10x+

Or just lit his money on fire, that would have been just as productive..

But they got Microsoft to bail them out. Since Microsoft already bought Nokia, they did not see any reason to buy Blackberry anymore.

Spicoli said,

Apple was a failing business not that many years ago.

fusi0n said,
never.take.the.first.offer.

Unless your blackberry.

I cant imagine there were too many offers to buy a sinking ship.

fusi0n said,
never.take.the.first.offer.

The only reason anyone could buy blackberry is because of their patents and corporate coonections and influence. that's it. its dead. I think 4.7 is a pretty darn good offer for BB right now.

trojan_market said,

The only reason anyone could buy blackberry is because of their patents and corporate coonections and influence. that's it. its dead. I think 4.7 is a pretty darn good offer for BB right now.

So, you know more than the entire business world? I suspect not.