BlackBerry has revealed that they have agreed to be acquired by Fairfax group for $4.7 billion. At the moment Fairfax owns about 10% stake in BlackBerry and they have offered to pay $9 a share in cash for the Canadian company.
Last week there were reports that the company is expected to report a quarterly loss of nearly $1 billion and they are planning to lay off around 4500 employees. After the company shared the report of sharp drop in revenue and massive job cuts the BlackBerry share prices have fallen considerably.
Prem Watsa, CEO Fairfax Financial holdings said in a statement:
“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 can try to find superior offers till November 4 which is also the deadline for the Fairfax group to conduct its due diligence. What do you think about the deal? Do let us know by leaving a comment below.