BlackBerry, a Canada based struggling smartphone manufacturer, had been more open to a company breakup amid concerns that its biggest shareholder Fairfax Financial Holdings Ltd would not be able to find funds or partners for a proposed USD4.7 billion buyout deal.
BlackBerry
- Uber Sued by London Black Cab Drivers for £250 Million Over Taxi Booking Rules
- Australia's Macquarie Bank Terminating Cash Transactions in All Branches as It Shifts to Fully Digital Banking Services
- Joe Biden Administration Sanctions Hundreds of Companies to Choke Russia's Supplies of Military Technology
At the height of its business, BlackBerry servers provided supported its devices with secure email technology, which now is key to its survival.
BlackBerry shares rose last Monday after reports of potential strategic buyers taking interest in the struggling smartphone maker, said a Reuters report.
Google, SAP and Cisco had been in discussions to possible acquire struggling smartphone maker BlackBerry, said a Reuters report.
BlackBerry's shares increased because of rumored interest from Cerberus Capital.
According to a Bloomberg report, BlackBerry became so desperate to find a possible buyer for the struggling smartphone maker which resulted to an agreement to pay its biggest shareholder a rare breakup fee.
After more than dismal last quarter financial reports, BlackBerry is contemplating its exit from the smartphone market.
Industry watchers did not look too kindly on BlackBerry's move to focus on its enterprise customers.
Analysts and industry executives gave their take on the USD 4.7 billion buyout offer for BlackBerry on Reuters Instant View.
BlackBerry sales continued to plunge even as the company seeks a USD 4.7 billion privatization deal.
Prem Watsa, the Canadian Warren Buffett, expressed confidence as to his consortium's bid for the floundering Canadian smartphone maker.
The USD4.7 billion bid by Fairfax for BlackBerry would be backed up by loans, equity investments and its own shares in the smartphone maker.
BlackBerry's valuation by Fairfax Holdings was set at 20% the book value, including cash.
Fairfax Holdings formalized a bid for BlackBerry at USD9 per share.
BlackBerry signed a tentative deal to be acquired by a consortium led by the company's biggest shareholder, Fairfax Financial Holdings Ltd.
Subscribe to VCpost newsletter
Most Popular
- Oil Prices Drop Below $80 After US Oil and Petroleum Reserve Reach Highest Level
- SSI Payment: Double Social Security Benefits in May? Here’s When You Will Receive Yours!
- Supreme Court Hints at Granting Trump Criminal Immunity, Jan 6 Trial Delay Looms
- Trump Justifies Earning Millions from Foreign Governments During Presidency
- Elon Musk Says US Companies Not Spending At Least $10 Billion on AI Like Tesla 'Cannot Compete'
- Joe Biden Administration Sanctions Hundreds of Companies to Choke Russia's Supplies of Military Technology
- Businessman Who Shot His Wife to Death Thinking She Was an Intruder Gets Only 12 Years in Prison
- Amazon CEO Andy Jassy Violates Federal Labor Law With Anti-Union Comments, NLRB Finds