Fairfax Group Buys Out BlackBerry for $4.7 Billion

Since the launch of Apple's iPhone, and subsequently, a horde of Android devices led by Samsung, BlackBerry started losing ground. With its depleting market share, net losses, mass layoffs, and uninspiring sales of BB10 devices, everyone knew that BlackBerry was in trouble. Recently, the Canadian-based company announced that it has been looking for investors to buy out the company. The wait may be over as BlackBerry just announced that it has signed a letter of intent agreement for a sale of the company amounting to $4.7 billion to a consortium led by Fairfax Financial, which also happens to be BlackBerry's largest shareholder.


Pending due diligence the sale is expected to be completed by November 4, which means that BlackBerry will go private, with shareholders each receiving $9 per share in cash. Quoting Fairfax Chairman and CEO Prem Watsa, he said: "we believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees," adding, "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." BlackBerry's CEO Thorsten Heins has yet to release a statement.

Image by Engadget

In the meantime, BlackBerry will continue looking for alternative offers, but according to the intent agreement, Fairfax group will have all the rights to match the offers if any. The Fairfax group, which currently owns a 10% stake in the company, has several partners who have opted to remain anonymous until the diligence is completed.

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Til then...

xoxo Nash