BlackBerry's Q10 launched in April.

BlackBerry's Q10 launched in April.

Sold: BlackBerry agrees to $4.7 billion offer from Fairfax Holdings

The deal - for $9 a share - would privatize the Canadian smartphone maker. A 'due diligence' period expires on November 4.

BlackBerry has signed a letter of intent offer from consortium led by Fairfax Holdings Ltd., after the group made an offer to buy the Canadian smartphone maker for $9 a share, or $4.7 billion.

Trading on BlackBerry shares was halted Monday afternoon, at $8.23 per share. Fairfax currently owns 9.9 per cent stake in the company. The deal would make BlackBerry a private company, as opposed to the TSX and NASDAQ-trading public company it is now.

from Deal/Book (NY Times), by David Gelles and Ian Austin:

“While being privately held would allow BlackBerry to restructure without worrying about bad news affecting its share price, several analysts have questioned how it can remain in the phone business without access to open capital markets. Its competitors like Apple and Google are among the most profitable and largest corporations in the world.”

(*In line with Deal/Book’s reporting, the news of BlackBerry pending sale came on the same day Apple announced it had sold 9,000,000 5C and 5S iPhones, sending that company’s stock up five per cent.)

————————————————————

Visit NBCNews.com for breaking news, world news, and news about the economy

————————————————————

In a news release, BlackBerry says the letter of intent permits Fairfax six weeks to “conduct due diligence” and it allows BlackBerry to “go-shop” during that period, with a termination fee applied if the company accepts an alternative offer.

The diligence period ends on November 4.

“We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees,” said Prem Watsa, chairman and CEO of Fairfax.

“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.”

BlackBerry was founded in 1984 in Waterloo, Ontario, and was introduced to its market(s) in 1999.

Just last week, the company announced it was cutting 4,500 jobs across all its properties, and first quarter losses totalled nearly $1 billion.

Just Posted

Victoria-born, 16-time Grammy winning musician David Foster penned a letter to the Greater Victoria School District May 7 urging them not to cut music programs. (THE CANADIAN PRESS)
David Foster joins fight to save music in Greater Victoria School District

‘Music is the great equalizer’ Foster wrote in a letter to the district

‘Nindanikoobijiganag: We are Star People’ by Mississauga Nishnaabe Lucbanin artist Estrella Whetung. (Jane Skrypnek/News Staff)
Victoria beadwork exhibit speaks to evolving, enduring nature of Indigenous art

On Beaded Ground features work from West Coast artists and a Cedar Hill Middle School group

Former Victoria HarbourCat and Chicago White Sox player Andrew Vaughn. (Photo courtesy of Chicago White Sox)
Former Victoria HarbourCat hits first MLB home run, adds another two days later

Andrew Vaughn is the first HarbourCat alumni to hit a homer in the majors

A seniors housing complex proposed for Cedar Hill Road in Saanich was supported by council after a public hearing on May 12. (Rendering by Jenson Group Architects)
New 85-unit seniors housing development gets green light from Saanich council

Four-storey rental complex would be located on Cedar Hill Road

Daily confirmed COVID-19 cases reported to B.C. public health, seven-day rolling average in white, to May 12, 2021. (B.C. Centre for Disease Control)
B.C. preparing ‘Restart 2.0’ from COVID-19 as June approaches

Daily infections fall below 500 Friday, down to 387 in hospital

On Friday, May 14 at Meadow Gardens Golf Club in Pitt Meadows, Michael Caan joined a very elite club of golfers who have shot under 60 (Instagram)
Crowds at English Bay were blasted with a large beam of light from an RCMP Air-1 helicopter on Friday, May 14. THE CANADIAN PRESS/Marc Grandmaison
Police enlist RCMP helicopter to disperse thousands crowded on Vancouver beach

On Friday night, police were witness to ‘several thousand people staying well into the evening’

Sinikka Gay Elliott was reported missing on Salt Spring Island on Wednesday, May 12. (Courtesty Salt Spring RCMP)
Body of UBC professor found on Salt Spring Island, no foul play suspected

Sinikka Elliott taught sociology at the university

The first Black judge named to the BC Supreme Court, Selwyn Romilly, was handcuffed at 9:15 a.m. May 14 while walking along the seawall. (YouTube/Screen grab)
Police apologize after wrongly arresting B.C.’s first Black Supreme Court Justice

At 81 years old, the retired judge was handcuffed in public while out for a walk Friday morning

Queen Elizabeth II and Clive Holland, deputy commonwealth president of the Royal Life Saving Society, top left, virtually present Dr. Steve Beerman, top right, with the King Edward VII Cup for his drowning-prevention work. Tanner Gorille and Sarah Downs were honoured with Russell Medals for their life-saving resuscitation. (Buckingham Palace photo)
Queen presents Vancouver Island doctor with award for global drowning prevention

Dr. Steve Beerman receives Royal Life Saving Society’s King Edward VII Cup at virtual ceremony

Former UFV Cascades wrestling coach Arjan Singh Bhullar is now the ONE heavyweight champion after defeating Brandon Vera via TKO in round two on Saturday in Singapore. (ONE Championship)
Former UFV wrestling coach wins MMA championship

Arjan Singh Bhullar captures ONE heavyweight title, first Indian origin fighter to achieve honour

Astra Zeneca vaccine waits for injection in a Feb. 3, 2021 file photo. A Langley man has become the second B.C. resident to suffer a blood clot following an injection. (AP Photo/Frank Augstein)
B.C. man required emergency surgery after AstraZeneca vaccination

Shaun Mulldoon suffered ‘massive blood clot’ after jab

Chilliwack’s Kile Brown, performing as drag queen Hailey Adler, dances and lip syncs in front of hundreds of people during the inaugural Chilliwack Pride Barbecue at the Neighbourhood Learning Centre on Aug. 24, 2019. Monday, May 17 is International Day Against Homophobia, Transphobia and Biphobia. (Jenna Hauck/ Chilliwack Progress file)
Unofficial holidays: Here’s what people are celebrating for the week of May 16 to 22

International Day Against Homophobia, Talk Like Yoda Day, Sea Monkey Day all coming up this week

Most Read