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The deal would be completed November 4 after a due diligence period

BlackBerry has announced that it's signed a letter of intent agreement for a $4.7 billion USD sale of the company.

According to a press release, BlackBerry signed the letter agreeing to a sale of the company valued at $4.7 billion to a consortium led by its largest shareholder -- Fairfax Financial Holdings Ltd. Fairfax owns 10 percent of BlackBerry. 

This deal, which would be completed November 4 after a due diligence period, would ensure that BlackBerry goes private. Additionally, each shareholder would receive $9 per share in cash. 

Fairfax and its co-investors are seeking financing from Bank of America Merrill Lynch and BMO Capital Markets.

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

The due diligence period means that BlackBerry's Board of Directors can see if there are any better opportunities out there besides the offer from Fairfax Financial. However, if it does take another offer after signing this letter, it must pay a termination fee.


BlackBerry was once a big player in the mobile gadget realm with its popular BlackBerry smartphones and OS -- especially for the business folks. But in recent years, competitors like Apple and Samsung have stolen BlackBerry's spotlight and a significant amount of its market share in both the consumer and corporate/government markets. 

In 2011, BlackBerry had 14 percent of the U.S. smartphone market, and now, it has less than 3 percent.

This means that BlackBerry's wallet is taking a big hit. The company reported a loss of $84 million in the quarter that ended June 1, as well as a decrease of 4 million subscribers.

Last week, it was reported that BlackBerry is expecting a GAAP net operating loss of $950 to $995 million, and will cut 4,500 jobs. As of March, BlackBerry had 12,700 employees. 

BlackBerry's board of directors announced the formation of a Special Committee to explore strategic alternatives earlier this month to enhance the value and accelerate the development of BB10 -- the company's latest operating system and line of devices that launched in January. The announcement came only a few days after a report surfaced that BlackBerry might go private in an attempt to fix its problems away from the public. 

Reuters reported last week that bidders for the sale of BlackBerry want only parts of the Canadian company instead of the whole thing. More specifically, they're interested in BlackBerry's operating system and the patents for its keyboard. This further shows that BlackBerry is in such a bad spot that bidders only want to pick it for its valuable parts rather than buy the whole thing and try to fix it. 

The icing on the cake is that BB10 didn't take off and save the company the way BlackBerry expected. Both BB10 hardware releases -- the Z10 and Q10 -- have largely flopped. T-Mobile even took BlackBerry devices off of its shelves. It's releasing the high-end Z30 flagship BB10 phone soon, but many believe the results will be no different. 

Source: Market Watch



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LOL @
By Cheesew1z69 on 9/23/2013 2:59:39 PM , Rating: 2
Pirks...




RE: LOL @
By JasonMick (blog) on 9/23/2013 3:07:25 PM , Rating: 3
From a January Pirks post:
http://www.dailytech.com/RIM+Ditches+Name+Becomes+...
quote:
sneaky lying tr0ll mick now got an excuse
By Pirks on 1/30/2013 12:26:27 PM , Rating: -1
whenever I pwn him [Jason] for his lies about his infamous m0ronic "RIM sale" rhetoric he would reply now "but 'RIM' is really DE@D now!"

sneaky lying tr0ll hehe :) he thinks he can wiggle his way out of this
To my friend Pirks: gg, better luck next time!


RE: LOL @
By Cheesew1z69 on 9/23/2013 3:19:14 PM , Rating: 3
We all knew it would happen except him :)


RE: LOL @
By JasonMick (blog) on 9/23/2013 3:23:09 PM , Rating: 2
quote:
We all knew it would happen except him :)

Too true.

RIM fans/nostalgists, I feel for you... I love BlackBerry's keyboards and I really wished they had found a way to adapt and compete. But the reality is that BlackBerry has been dead in the market for a very long time -- a year or more.

Today's announcement wasn't so much the death of BB, it was more like a headshot to the zombie remains of the company that was once BlackBerry.

One can only hope that the IP remains of the BB corpse can be used by Google and whoever else to cut down on the quantity of junk smartphone lawsuits.


RE: LOL @
By YearOfTheDingo on 9/23/2013 5:09:31 PM , Rating: 2
Unless Google is putting in a bid for the company it sure as hell isn't going to get its hands on them patents. The whole point of going private is so that it can be reorganized into one lean, mean trolling machine.


RE: LOL @
By random2 on 9/26/2013 8:31:33 PM , Rating: 2
Or sold off piecemeal.


RE: LOL @
By retrospooty on 9/24/2013 10:29:49 AM , Rating: 2
"We all knew it would happen except him"

Yup, that was so obvious. I remember him absolutely blasting me about a year ago when RIMM announced that BBOS10 devices would ship in early Q1-2013 for not seeing that BBOS10 would save the company. He about ripped me a new one for not seeing it LOL.

I told him RIMM would be sold off in bits 2 years ago, he just refused to see it. The only thing that surprised me is how long they held on. Had they sold off earlier they could have got a lot more $ for it. Stupid.


RE: LOL @
By Reclaimer77 on 9/23/2013 3:42:52 PM , Rating: 4
Lies Jason, all lies!! The RIM Playbook will change the world!!! Playbook will never die! PLAYBOOOOKKKKKKkkkkkkkkkkkkkkkk!!!!!!!!!!!!!!!!!!!! !!!!!

/pirks


RE: LOL @
By retrospooty on 9/23/2013 6:27:44 PM , Rating: 2
No Pirks post on RIM would be complete without him calling Jason (or whichever person was dispensing the logic that day) a LIAR and a TROLL with all caps and at least one exclamation point.


RE: LOL @
By Reclaimer77 on 9/24/2013 1:11:09 AM , Rating: 1
Don't forget "oldfag" lmao...


RE: LOL @
By retrospooty on 9/24/2013 8:33:23 AM , Rating: 1
LOL, that's right. Jason was the LIAR, TROLL, and you and I were oldfags, because we don't like Win8's UI. LOL.

What a putz.


RE: LOL @
By Cheesew1z69 on 9/24/2013 10:41:39 AM , Rating: 1
Also Mick the Dick was one of his common favorites...


RE: LOL @
By iamkyle on 9/24/2013 2:06:15 PM , Rating: 2
Actually Mick, pirks was defending the tirades against the company being dead. Last time I checked, BlackBerry exists. And will continue to exist when the FairFax acquisition is complete.


RE: LOL @
By Cheesew1z69 on 9/24/2013 2:49:58 PM , Rating: 2
And they were all but dead....you can't be serious in defending Pirks? LOL


RE: LOL @
By amanojaku on 9/23/2013 3:31:42 PM , Rating: 1
I miss Pirks. Now, all we have to laugh at is Tony Swash and his Juice Crew. And you can't even laugh at the things they say. You just shake your head in pity, and wonder how a person so intelligent in matters like climate change can be so stupid when it comes to his favorite brand.


RE: LOL @
By Cheesew1z69 on 9/23/13, Rating: -1
RE: LOL @
By syslog2000 on 9/23/2013 4:15:45 PM , Rating: 4
There is some irony buried in that post there...


RE: LOL @
By palmira_friend on 9/25/2013 3:33:40 PM , Rating: 2
my parents inlaw just got a 2013 Audi TT Convertible by working part time off of a computer. additional info>>>>>>>.......... http://fave.co/18pfsID


RE: LOL @
By retrospooty on 9/23/2013 6:29:16 PM , Rating: 2
Ya, If I missed Pirks, I would just go teach Jr. High school. That is about his mentality level. Scary that he has kids. Seriously scary.


RE: LOL @
By Cheesew1z69 on 9/23/2013 6:47:49 PM , Rating: 2
I feel bad for his kids :/


RE: LOL @
By marvdmartian on 9/24/2013 9:34:53 AM , Rating: 2
His kids, no doubt, will consider him a fool as well.


RE: LOL @
By Flunk on 9/23/2013 8:18:04 PM , Rating: 2
I honestly didn't notice. The last thing anyone needs is a bunch of totally content-less posts which is all he provided.


RE: LOL @
By Cheesew1z69 on 9/23/2013 8:30:19 PM , Rating: 2
Yep, and insulting everyone including the staff, and not in just a few posts, but every single post he made.


RE: LOL @
By Spuke on 9/24/2013 3:32:35 PM , Rating: 2
Maybe Pirks is just his internet persona and in reality he's a real stand up guy.


RE: LOL @
By Spuke on 9/24/2013 3:33:29 PM , Rating: 2
NAAAAHHHH!!!!!


RE: LOL @
By palmira_friend on 9/25/2013 3:32:52 PM , Rating: 2
my parents inlaw just got a 2013 Audi TT Convertible by working part time off of a computer. additional info.......... http://fave.co/18pfsID


A simple observation
By EasyC on 9/23/2013 3:16:23 PM , Rating: 2
Jason,

Your graphic of the cell phone race is incorrect. The blackberry position is right, but the others...

Well, unless you're talking about the HTC Thunderbolt by itself.




RE: A simple observation
By JasonMick (blog) on 9/23/2013 3:19:48 PM , Rating: 2
BlackBerry Agrees to $4.7 Billion Sale with Fairfax Financial
Tiffany Kaiser - September 23, 2013 2:55 PM

And to be fair to Tiffany, I think it's more meant as a historical depiction (as iOS was briefly #2 and Android #3 -- 2009 methinks?)... note the iPhone 3G/3GS stylings. And you can't see Symbian ... he was way ahead of Android OR Apple @ that time.


RE: A simple observation
By DanNeely on 9/23/2013 3:55:59 PM , Rating: 2
I'm not quibbling there; but the BB should've been added at a steep angle to indicate it had fallen and was laying down on the track not just running too slowly.


Oh, wait a minute...
By Motoman on 9/23/2013 3:02:35 PM , Rating: 4
quote:
The deal would be completed November 4 after a due diligence period


..."oh wait, this is a steaming pile of dung. Don't want it."




Holdings Company
By gamerk2 on 9/23/2013 3:14:37 PM , Rating: 2
Fairfax is a holdings company, so the pieces of BB (Read: The encryption algorithm) is going to be sold off piecemeal. Figure MS/Google are going to be the two biggest buyers for the different pieces of the company.

So BB is done within a year.




RE: Holdings Company
By arazok on 9/23/2013 3:24:04 PM , Rating: 2
The purpose of a holding company is not to liquidate it’s assets. It’s to get a return for investors, which can mean liquidate, restructure, invest in, or simply hold a company in it’s portfolio.

Sometimes these companies simply buy a company and leave them alone for a few years while they grow, and then sell them later. Although that will certainly not be the strategy with this purchase.


By sorry dog on 9/23/2013 4:06:22 PM , Rating: 2
quote:
"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."


If you look at the stock price history, with the exception of a couple of days in July where it briefly dropped below $9, the only value delivered to shareholders is negative. So why do CEO's and their like insist on delivering piles of steaming hot bull$hit, when the statement could be easily reworded to still be positive without insulting the intelligence of anybody with an IQ higher than the toilet paper the press release is written on.

They could easily say, hey we're buying so you don't have to worry about it becoming worthless, and any owner in touch with reality will realize it's better than riding the train all the way down to bankruptcy.




That's a long way to fall
By Solandri on 9/23/2013 4:27:59 PM , Rating: 2
quote:
This deal, which would be completed November 4 after a due diligence period, would ensure that BlackBerry goes private. Additionally, each shareholder would receive $9 per share in cash.

Their high in 2007 was about $230 per share. And their long-term average from 2004 to the end of 2010 was about $70-$80.




Stock are brutal
By chµck on 9/23/2013 7:24:36 PM , Rating: 2
quote:
each shareholder would receive $9 per share in cash.

I feel sorry for the people who are still holding shares in the $15 range from when BBRY was being pumped this past summer after the release of their new phones....

Jk, I don't. Most of them were were betting on NOK to crash and were very vocal about it.




Plastic z10?
By Dawnesha on 9/25/2013 4:27:31 PM , Rating: 2
Who the hell wants a plastic phone? Big mistake.




RIP PALM... uh RIM
By unimatrix725 on 9/29/2013 4:31:26 PM , Rating: 2
I could see Apple or even HP as a leading bidder.... Who knows I feel the same way it was stated. There is no hope for RIM as everyone wants just a piece of them. I would not be surprised if they were done the way Kodak was.... The big Players team up to buy RIM and share the spoils....




"And boy have we patented it!" -- Steve Jobs, Macworld 2007














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