Fairfax strikes $4.7-billion deal to buy BlackBerry
Source: The Globe and Mail
Fairfax Financial Holdings Ltd. has put together an equity consortium that is seeking to take BlackBerry Ltd. private for $9 (U.S.) a share, a deal valued at about $4.7-billion.
BlackBerry is giving the group six weeks to conduct due diligence, with a final agreement expected by Nov. 4. BlackBerry is able to look for alternative offers in the meantime, but the Fairfax group has a right to match them. Fairfaxs equity partners want to remain anonymous until the due diligence is completed.
BlackBerry has fallen on hard times recently, but we have every confidence it will be successful again, Fairfax CEO Prem Watsa said in an interview.
The group has arranged debt financing from Bank of America and Bank of Montreal. Were trying to make sure it remains in whole in Canada, said Mr. Watsa, who stepped down from BlackBerrys board last month to avoid criticism over a potential conflict of interest as he sought to find a future path for the beleaguered company. Fairfax is its largest shareholder, with a 10 per cent stake.
Read more: http://www.theglobeandmail.com/report-on-business/fairfax-strikes-47-billion-deal-to-buy-blackberry/article14470689/
onehandle
(51,122 posts)Its time is over.
BlackBerry failed to take the iPhone seriously.
Microsoft failed to take the iPhone seriously, but luckily sells other products.
A Google spy sat on the board of Apple, and wisely stole company secrets, to iPhone-ize Android, which was basically a rip off of BlackBerry.
TexasTowelie
(112,189 posts)tinrobot
(10,900 posts)Android now controls 80% of the device market,.
A few decades ago, Apple didn't take Microsoft seriously, either. Because of that, Microsoft still owns 85% of the desktop/laptop market.
Apple may know how to innovate, but they don't know how to truly go mass market.
onehandle
(51,122 posts)...and is worth more than any company on Earth.
But keep on dreaming...
Apple destroys smartphone sales record: First weekend iPhone sales top nine million units
(The previous all-time 3-day smartphone sales record was over 5 million set in September 2012 by Apples iPhone 5.)
http://macdailynews.com/2013/09/23/apple-destroys-smartphone-sales-record-first-weekend-iphone-sales-top-nine-million-units
tinrobot
(10,900 posts)Agschmid
(28,749 posts)In fact with the pricing of the iPhonec I'd argue they don't...sneers they actually ignore a large portion of the market and drive gross margin instead.
In our economy profitability is what can make your company " win".
TexasTowelie
(112,189 posts)They made a killing in the derivatives market as a counter-party to AIG betting against the US real estate market in 2006-2008.
Prem Watsa is of Indian descent and is the Canadian version of Warren Buffett. He is responsible for outsourcing jobs to India in the insurance and IT sector. He is a risk taker and usually makes good decisions, but investing in Blackberry probably isn't one of them. If I was a Blackberry employee in either the US or Canada, then I would start looking for another job. I'd take some satisfaction in knowing that he blew his fortune on this deal since nearly all of his financial holdings are with FFH.
The primary insurance group for FFH in the US is the Crum & Forster Group and the flagship company is U. S. Fire Insurance Company.
coldmountain
(802 posts)TexasTowelie
(112,189 posts)I wouldn't put it past Watsa to bet against his own company in a derivatives scam though.
mahatmakanejeeves
(57,446 posts)http://money.cnn.com/2013/09/23/technology/mobile/blackberry-private/
NCagainstMcCrony
(47 posts)Lets all thank the Federal gummint for destroying Research in Motion. The US intelligence agencies demand that RIM provide back doors for the "intelligence community" to be able to spy on RIM's customers ended RIM's biggest selling points. Security and privacy.
Yay! police state wins again.
Agschmid
(28,749 posts)Your post makes no sense... Also blackberry is Canadian so it's likely they don't often do what the NSA wants.