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  • BlackBerry Reaches Deal to Go Private


    Following Friday's devastating news that more than 35% of the company's workforce is being laid off, BlackBerry announced Monday that the Canadian smartphone maker has reached a deal to leave public life and go private.

    BlackBerry will be taken private by a group led by Fairfax Financial Holdings.

    BlackBerry has signed a letter of consent that will pay shareholders $9 in cash for each share of BlackBerry they hold, in a transaction valued at approximately U.S. $4.7 billion.

    The consortium would acquire for cash all of the outstanding shares of BlackBerry not held by Fairfax. Fairfax, which owns approximately 10 percent of BlackBerry’s common shares, intends to contribute the shares of BlackBerry it currently holds into the transaction.
    Barbara Stymiest, Chair of BlackBerry’s Board of Directors, said: “The Special Committee is seeking the best available outcome for the Company's constituents, including for shareholders. Importantly, the go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal from the Fairfax consortium.”

    As MMi reported Friday, BlackBerry is taking a whopping loss of close to $1 billion in its second quarter. The failure of the BlackBerry Z10 is the primary reason for the sad news that close to 5,000 people will be losing their jobs.

    “We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees," says Prem Watsa, Chairman and CEO of Fairfax. "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.”

    Source: BlackBerry
    This article was originally published in forum thread: BlackBerry Reaches Deal to Go Private started by Michael Essany View original post
    Comments 6 Comments
    1. stolenpentium's Avatar
      stolenpentium -
      Long time coming
    1. zrevai's Avatar
      zrevai -
      Probably too little way too late!
      How is buying out shareholders and going private going to help?? Other than when they lose a billion dollars they don't have angry stockholders demanding to know what went wrong, where's the benefits of this deal or are there any???
    1. LGgeek's Avatar
      LGgeek -
      "We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees"
      Unless of course you are one of the 4500 employee's laid off.

      "focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world."
      I don't believe BB problem has been that competitors can deliver better secure solutions.

      If you "were" a shareholder you should fell like you just one the lotto with someone else dollar.
    1. steve-z17's Avatar
      steve-z17 -
      So basically they're going to disappear...
    1. wb4whd's Avatar
      wb4whd -
      Quote Originally Posted by stolenpentium View Post
      Long time coming
      Amen, let's be honest, BB has been a bit of a joke as a handset maker for quite a while now. To be honest, I can see Windows Mobile being the next to fall. Android and iPhone are where the smartphone market is these days, BB and MS has their time and their time is long since passed.
    1. bigboyz's Avatar
      bigboyz -
      iOS and Android are running the smartphone world. Windows has some spark but can't get the advertising right. BB has been down and out longer than they were on top. How many people do you know even have one? Other than some corporations that are letting there long term agreements run out...I just dont' see them. I wish them well in the private sector. Remember competition is good for all. Let us keep in mind you have to be considered competition first :]