06:23 25 September 2013
Following the announcement that it would report disappointing quarterly revenues and about $1billion operating loss, Blackberry is set to go private courtesy of $4.7billion offer from Fairfax.
Fairfax already owns 10per cent of the company. With this offer, investors will be paid $9per share. The deal is subject to regulatory approval and due diligence for six weeks. During which time, co-founder Mike Lazaridis said it will open doors to other potential suitors for better offers.
Ms Stymiest said: “The go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal.”
Blackberry has been losing in the smartphone industry since Apple has introduced iPhone and its user-friendly touchscreen in 2007. In 2011, it sold 14per cent of all the smartphones in world. This number decreased to just less than 3per cent this year placing the company behind Google Android devices, the iPhone, and Microsoft’s Windows Phone.
Meanwhile, Fairfax is interested in capitalising Blackberry’s remaining foothold in the corporate market. Mr Prem Watsa, the chairman of Fairfax, said: “We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world.”
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