A PYMNTS Company

US: Sinking Blackberry agrees to $4.7B sale

By  |  September 23, 2013

The struggling smartphone company Blackberry, which recently announced major job cuts, announced an agreement to be acquired by Fairfax Financial Holdings-lead group for $4.7 billion, say reports.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The smartphone company has made a preliminary agreement with Canada-based insurance company Fairfax Financial, say reports.

    Blackberry stock has seen dramatic drops and brokerages have targeted shares as low as $5. In three months, the company lost a reported 4 million subscribers, between the end of March and the end of June this year.

    The firm also announced plans to cut its workforce by up to 40 percent.

    Fairfax currently owns a 10 percent stake in the company, whose buyout offer at $9 a share is a stark contrast from its once-valued $148 a share during its 2008 peak.

    Reports say Fairfax has yet to raise the funds for the deal, which is subject to six weeks of due diligence, during which BlackBerry is entitled to a go-shop period.

    Full Content: Reuters and The Wall Street Journal

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.