BlackBerry Signs Letter Of Intent With Fairfax Worth $4.7 Billion

In a recent report it was revealed that BlackBerry had suffered a huge operating loss of $1 billion which confirmed that job cuts were on the way. This is not surprising as the company has been struggling for a while and there have been talks about BlackBerry taking themselves private, with one report suggesting that BlackBerry’s co-founder could be making a bid for the company he helped founded. However it turns out that Fairfax Financial could be the one to buy the company. BlackBerry has signed a letter of intent with the company that could potentially see BlackBerry sold to Fairfax for $4.7 billion. The letter of intent is not a binding contract per se, but it’s a step towards the right direction and if all goes well, we expect to see BlackBerry taken private in the near future.

BlackBerry shareholders are expected to be paid $9 per share and the consortium is allowed 6 weeks of due diligence to make sure that everything is in the right order before giving the green light. In the meantime BlackBerry is also allowed to continue shopping for a potentially better deal, although if they were to find one, they are expected to pay a termination fee in the event that the newer offer is accepted. If you’d like to learn more about the deal, you can check out the press release at BlackBerry’s website.

Tyler Lee
Categories: Cellphones
Tags: BlackBerry