BlackBerry To Sell Itself to Consortium For $4.7 Billion
The days of BlackBerry could be coming to an end... or, at least the BlackBerry that we all know today. As the company begins to deal with the reality of its situation -- a reality that shows massive declines in sales, a lack of interest from consumers, and highly formidable opponents in the smartphone arena -- it has decided this week to sell itself to a consortium led by Fairfax Financial. We all knew it would eventually come to this, and BlackBerry itself stated that it was looking to finalize a deal of some sort by November. Shortly after announcing plans to cut 4,500 jobs and focus more on the enterprise, it appears that BlackBerry will be offering itself for $4.7 billion.
It'll be a cash transaction that would net BlackBerry shareholders a paltry $9 per share; and to think, this company's stock was soaring above $100 just a few years ago. As of now, BlackBerry has simply signed a "letter of intent," and if the consortium doesn't find good reason to back away within the next six months, it should be a done deal. Already, Fairfax owns 10 percent of BlackBerry's common shares, and it intends to contribute the shares of BlackBerry it currently holds into the transaction.
It's still unclear what this means for the future of such an iconic mobile player, but it's probably best if you start saying your goodbyes. But hey, at least we'll have BBM to remind us of the good days, right?
It'll be a cash transaction that would net BlackBerry shareholders a paltry $9 per share; and to think, this company's stock was soaring above $100 just a few years ago. As of now, BlackBerry has simply signed a "letter of intent," and if the consortium doesn't find good reason to back away within the next six months, it should be a done deal. Already, Fairfax owns 10 percent of BlackBerry's common shares, and it intends to contribute the shares of BlackBerry it currently holds into the transaction.
It's still unclear what this means for the future of such an iconic mobile player, but it's probably best if you start saying your goodbyes. But hey, at least we'll have BBM to remind us of the good days, right?
