With Fairfax Financial-led consortium intending to buy out the company, Blackberry, for $4.7 billion the company's fate is finally coming into focus. And I think there is more hope for Blackberry now than there was in the past few years.
The company announced on Monday that it has signed a letter of intent with a consortium lead by Fairfax Financial. The $4.7 billion buy out is also valued at $9 per share.
CEO of Fairfax Prem Watsa, a former BlackBerry board member, said that the buyout would make BlackBerry a private company and would “open an exciting new private chapter for BlackBerry, its customers, carriers and employees. ”
BlackBerry says it expects Fairfax to finish conducting its due diligence by November 4th.
Even though the deal is not yet binding at this point, BlackBerry will still have to pay Fairfax a fee of $0.30 per share if the deal doesn’t happen.
BlackBerry shares jumped about 3% on on the news, which is a good thing for the company considering it's decline in share values over the months.
Blackberry going private doesn't mean they would stop production. Infact, they would continue their operations as usual but their shares would no longer be available to the public!
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