Fairfax Financial issues a U.S. $4.7 billion offer to acquire BlackBerry

What: Fairfax Financial offers to buy BlackBerry, in a transaction valued at approximately U.S. $4.7 billion.
Why is it important: Interest for BlackBerry devices has decayed. Software/hardware innovations and appointing celebrities as top executives have not been enough for the company to recover its "cool" factor among smartphone users or app developers.

Several sources (BusinessInsider, CNet and Forbes among them) report that Ontario-based Fairfax Financial Holdings Limited has offered to acquire BlackBerry, subject to due diligence. Negotiations are expected to be completed by November 4, during which BlackBerry can shop around for better offers.

Fairfax already owns 10% of the company, and now BlackBerry has signed a letter of intent, which contemplates a transaction in which its shareholders would receive U.S. $9 in cash for each share of BlackBerry share they hold, in a transaction valued at approximately U.S. $4.7 billion.

BlackBerry has been struggling to stay afloat for some time, despite fierce competition from Apple and multiple Android-powered smartphone makers. The company's stock lost 94 percent of its value over the past five years, and not even BB10 operating system could turn things around. Now, after announcing a nearly $1 billion loss for the quarter ended June 30 and also that it would be laying off 4,500 employees (in order to cut down operating costs), BlackBerry has finally acknowledged the need to find strategic alternatives.

BusinessInsider reports that 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."


Editorial Staff @portada_online

Portada Staff

MORE FROM PORTADA

The 5 Most Pressing Questions About Influencer Marketing Answered by Band of Insiders, Best Buy, Bimbo, and Pepsico

The 5 Most Pressing Questions About Influencer Marketing Answered by Band of Insiders, Best Buy, Bimbo, and Pepsico

During the seventh edition of the #PortadaMX summit, experts in Influencer Marketing took the stage to discuss best practices surrounding this elusive but undeniably effective tool to reach consumers. Vivian Baron, CEO and Creative Chairwoman at Band of Insiders, presented the panelists: Best Buy Mexico's E-commerce Subdirector José Camargo, Grupo Bimbo's Global Consumer Engagement Lead Giustina Trevisi, Band of Insiders' Influencer Marketing Manager Leonardo Vargas, and Pepsico/Drinkfinity's Director of Business Innovation & Marketing Yamile Elias.


Experts: Sears’ Future in Mexico Remains Bright, Implications for U.S. Hispanic Market

Experts: Sears’ Future in Mexico Remains Bright, Implications for U.S. Hispanic Market

Experts tell Portada the downfall of the storied retailer won’t affect the Sears franchise in Mexico where better merchandising and e-commerce under the management of Grupo Carso, owned by Mexican billionaire Carlos Slim, have built the franchise into a big hit with Mexican consumers. The implications for the U.S. Hispanic Market.