US: Sinking Blackberry agrees to $4.7B sale

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.

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

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