Fairfax Financial consortium agrees to purchase BlackBerry for $4.7 billion

By Adam Zeis on 23 Sep 2013 01:35 pm EDT

BlackBerry has signed a letter of intent with Fairfax Financial that means the company could soon be sold in a $4.7 billion deal. While a letter of intent isn't a binding contact, it does bode well for BlackBerry and, if everything pans out, could mean BlackBerry will go private in the very near future.

Press Release

  • BlackBerry shareholders would receive U.S. $9 per share in cash
  • Transaction valued at approximately U.S. $4.7 billion
  • Consortium permitted 6 weeks to conduct due diligence
  • BlackBerry entitled to go-shop during due diligence period, subject to payment of a termination fee in the event alternative offer accepted

WATERLOO, ONTARIO--(Marketwired - September 23, 2013) - BlackBerry Limited (NASDAQ: BBRY)(TSX: BB) today announced it has signed a letter of intent agreement ("LOI") under which a consortium to be led by Fairfax Financial Holdings Limited ("Fairfax") has offered to acquire the company subject to due diligence.

The letter of intent contemplates a transaction in which BlackBerry shareholders would receive U.S. $9 in cash for each share of BlackBerry share they hold, in a transaction valued at approximately U.S. $4.7 billion. The consortium would acquire for cash all of the outstanding shares of BlackBerry not held by Fairfax. Fairfax, which owns approximately 10 percent of BlackBerry's common shares, intends to contribute the shares of BlackBerry it currently holds into the transaction.

The BlackBerry Board of Directors, acting on the recommendation of a special committee of the board of directors (the "Special Committee"), approved the terms of the LOI under which the consortium, which is seeking financing from BofA Merrill Lynch and BMO Capital Markets, would acquire BlackBerry and take the company private subject to a number of conditions, including due diligence, negotiation and execution of a definitive agreement (the "Definitive Agreement") and customary regulatory approvals.

The Special Committee, chaired by Director Tim Dattels, was formed in August 2013 to review strategic alternatives for the company. J.P. Morgan and Perella Weinberg are acting as financial advisors and Skadden, Arps, Slate, Meagher & Flom LLP and Torys LLP are acting as legal advisors.

Diligence is expected to be complete by November 4, 2013 ("Diligence Period"). The parties' intention is to negotiate and execute a definitive transaction agreement by such date. During such period, BlackBerry is permitted to actively solicit, receive, evaluate and potentially enter into negotiations with parties that offer alternative proposals ("Alternative Transactions").

If (A) during the Diligence Period (i) BlackBerry enters into any letter of intent or definitive agreement providing for an Alternative Transaction, (ii) BlackBerry ceases to negotiate with the consortium in good faith with a view to entering into the Definitive Agreement by the end of the Diligence Period, or (iii) an Alternative Transaction is publicly proposed or publicly announced and is consummated within 6 months following the end of the Diligence Period, or (B) during the 3 month period following the end of the Diligence Period, BlackBerry enters into any agreement providing for an Alternative Transaction with a person with whom discussions were held before or during the Diligence Period, then BlackBerry shall pay Fairfax a fee of U.S. $0.30 per BlackBerry share, provided, however, that no such fee shall be payable if the consortium shall have reduced the price offered below U.S. $9.00 per share without the approval of the board of directors of BlackBerry. In the event that a definitive agreement is signed with Fairfax the termination fee will increase to U.S. $ 0.50 per share.

Barbara Stymiest, Chair of BlackBerry's Board of Directors, said: "The Special Committee is seeking the best available outcome for the Company's constituents, including for shareholders. Importantly, the go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal from the Fairfax consortium."

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

In addition to the consortium and its lenders being satisfied with all aspects of the due diligence to be carried out by them during the Diligence Period and the negotiation and execution of a binding definitive agreement approved by the board of BlackBerry, completion of the transaction will be subject to other customary conditions, including receipt of required regulatory approvals. There can be no assurance that due diligence will be satisfactory, that financing will be obtained, that a definitive agreement will be entered into or that the transaction will be consummated.

BDT & Company, LLC, BofA Merrill Lynch and BMO Capital Markets are acting as financial advisors, and Shearman & Sterling LLP and McCarthy Tetrault LLP are acting as legal advisors to Fairfax in connection with the transaction.

Adam Zeis Adam Zeis "Mobile Nations Content Strategist" 3740 (articles) 2892 (forum posts)

Reader comments

Fairfax Financial consortium agrees to purchase BlackBerry for $4.7 billion



it is a good thing for blackberry the company itself though. It can rest easy and continue their productions and enterprises without being in the spotlight of media and criticism

No matter what they do they will be in the media's focus for criticism. The media does not like BlackBerry IMHO and would like nothing more than to see it fail.

Posted via CB10

IMO the reason the media focuses so much on BlackBerry is due to the monumental missteps the company has made. Unfortunately BlackBerry's story is a business study in how to drive a once leading mobile device company into the ground

Posted from my 6230

The media knows next to nothing about BlackBerry except that it has a trackball and no one wants track balls anymore.

Nice marketing BlackBerry. Real nice. I listened to a sports commentator rag on BlackBerry for ten minutes. He had no idea that the is a totally new OS.

Nice going, BlackBerry.

Yep! BlackBerry's arrogance in thinking consumers other than "old" BlackBerry users would want the same old thing, their reluctance to change is the reason for their demise

Posted from my 6230

No the media will not be interested in a private company. No disclosures no story. No public interest. Until BlackBerry goes public again.

Posted via CB10

U must be crazy BBRY has been a media darling and that's why they get so much attention. Its been a monumental fall and that's news , they don't report anything possitve because nothing positive has happened with bbry in years. Your humble opinion is pretty stupid.

How is this good news? Fairfax will chop the company into pieces and sell the parts. I doubt BlackBerry will be making any more phones down the road.

Posted via CB10 on my Black Z10.

Yup. My last expensive mistake with this company. At least I stand a better chance of selling this device on Kijiji or something.

It's going to be interesting lurking on this site with a Samsung Android device soon. Sigh. Good times.

Posted via CB10

Yes, and what made that happen? Oh yes, really bad news Friday (a week before earnings call), BBM f/u over the weekend, and suddenly this 'good' news today. Can you say "timing"? Something BlackBerry has got down to a dark art now, I see.

Stock has been considerably over $9 consistently almost all year otherwise.

A legalized fraud: first they drive the stock down to peanuts (and the CEO for the collusion gets 60milion$) then they buy it and in a year or so they'll cash in a few hundreds % in profit.

These crooks should be locked up.

Nah, the losses they were taking would have had to be disclosed before offering a price. You can't hide that...even if it would have meant a higher stock price.

The price is where it needs to be, based on how BB is doing.

Ha you can't be serious. There so much that is wrong with that statement I don't know where to begin?

I'm sure the fall of RIM was purposely orchestrated and started YEARS before so Fairfax holdings could come in and buy it at $9. In terms of cashing out, please explain how they will be able to cash out shares in a company that will no longer be public? Or do you think Fairfax will sell its holdings "in a year or so?". And who, exactly, should be locked up? Mike L for creating a company that grew to be what it is (perhaps it would have been better if RIM was never created, so it would not even have a downfall)? Or the Board for not having hindsight and being able to see the threat iPhone and Android were going to create for them? What businesses have you run?

You can say what you want but I still think they deliberately drove the stock down from 18$ to 8$ executing on this plan.


You should report this to the regulator if you really have evidence they did this... in which case it is not 'legalized fraud' at all, but actual fraud.

Yes of course they did. Join the dots, bad advertising, crush good news immediately with bad news, write off a billion in hardware on Friday, blow the BBM launch, announce we will loose money in Q2 as you release Q1 results. Do not defend yourself while the media spreads lies etc. BlackBerry needs to be private in order to operate. The stock market does nothing for them. It does not raise them capital, but it costs the millions to belong to the club, there is a ton of red tape and legal fees, constant bashing etc. I run a private company and it is the way to go. Good for BB, good for its employees and good for the consumer. Dell just went private. I can see a vertical relationship around the corner. Way to go BlackBerry. Yes I am a BlackBerry shareholder, and yes I am taking a bath, but I understand the need for BlackBerry to go private. Now I can relax and buy the new z30.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

Ok and all of this was done so that the share price would drop, and an independent board member could buy it on the cheap?

I can imagine the meetings the executives had over their strategy .... "Well Frank, let's hire a firm who we think will do a so-so job on marketing a phone we just spent billions making .... after all, we want to make sure Prem can buy the remaining shares at a cheap price."

You guys are ridiculous.

The way these things typically play out is that the first person/company that makes the offer gets the company, particularly in Canada. If you have a problem with that as a shareholder (which, Dave, it sounds like you do) you could alway vote AGAINST the offer but you won't win. Here's why. With the shares trading below the offer price there are players who are buying the shares today just to vote FOR the deal. They will pick up a few cents for agreeing to go ahead with the transaction at $9.

If you REALLY believe the shares are worth more than the offer price your best hope would be to put your money where your mouth is. You could buy more shares for any amount below what you think they are worth (and still feel comfortable with) and vote against the offer with the hope there are enough like-minded investors who do the same. Unlikely to work, but you never know. It is an idea I am toying with.

Not sure if Prem is bidding for real or to try and get the ball rolling on an auction, stalking horse bid, to flush out any interested parties while providing a floor for the stock price so the spiral doesn't continue and skew auction pricing. Hmmmm. Not exactly excited to sell mine at $9.

Swiped with one thumb from the virtual keyboard of my awesome Z10!

Well said.
The company has a better chance to survive being private. Bad press only causes "corporate's" from using BES because they fear BB will not be around in the near future.
Likewise for consumers who want to purchase phones.

Not every bad business decision has a "plot" behind it. Mostly just bad managers. All these conspiracy stuff is just paranoid

Posted via CB10

I absolutely agree with you Dave79. I have been raising this speculation in posts ever since the announcement of looking for a "Strategic Alternative". It is incredible how fast Fairfax and BB signed the letter of intent after crushing the stock with its announcement of a billion dollar loss.

There will be a flurry of class action lawsuits. The billion dollar "loss" was an inventory write down. BB could just as easily elected not to take the write down and report a breakeven quarter.

Fairfax buys BB for $4.7 Billion and $2.6 is in cash, meaning they really bought it for a measley $2 Billion. This is not over.

MGDania, what makes you think writing down inventory is an 'optional' election? Its either worth less than they are carrying it at, in which case they have to write it down, or its not. Their auditors would also have to be comfortable with this given that they are likely wrapping up their quarterly review.

I guess this is the kind of 'business discussion' you'd expect to see on a tech forum.

You clearly have no idea of financial reporting and securities law.

Impairments are reportable at the end.of each reporting period, if market conditions indicate a reduced realizable value on inventory, or on an assets ability to generate expected returns.

BlackBerry, knowing they were going to announce this sale, is required by law to disseminate the bad news first, so that shareholders can reprice the stock. They could have otherwise waited until next week to report had there no deal be in the works.

This is why it seemed odd to report the bad news last week, because they were going to report the offer to sell the company today.

Posted via CB10

Interesting... BBM for Android signed up 1.1M new users in a matter of hours; BBM Channels will be hitting the airwaves in production soon. These products compete with the likes of Tumblr and What's App which were each recently sold for $1B. I could be wrong, but I think this sale was incredibly opportunistic. I don't believe that there is much that Fairfax can do to turn BlackBerry around that the company couldn't do on its own in the same amount of time. Sure, they could bust it up and sell it, but then give today's shareholders that breakup value (ie patents + cash + good will). Personally I think the current shareholders are being robbed. If the board of directors wanted to maximize shareholder value, they should have given 1 year for bb10 to shake out - it should have been part of the public game plan since last January's launch instead of putting on rose coloured glasses and setting themselves up to be pummeled by the press. Oh well, another one for the university case study text books.

Posted via CB10 on Zed10.

The timing just seems too coordinated to be impartial to the shareholders. A few hours of actually trading between announcements...hmmm. I am not saying there is fraud but there will almost certainly be some speculation and investigation just like there was with Nortel.

Your right I am not privy to the inner workings of BB and its financial reporting but with the write down being such a big part of the devaluation over the last couple of days. How did they value the write down? Unless they scrapped the excess inventory (zero) or sold it (sale price), the valuation would seem to be subjective and most likely determined internally. I guess we will find out more on Sept 27th but that seems to be immaterial for the shareholders now.

It seems Mr. Heins completely mishandle the launch of BB10 and to see that guy gets his 50+ million bonus because the company is being sold at fire sale prices because of his own incompetence is a further insult to shareholders. The shame lies with the BOD including Prem Watsa as he was still member while watching BB decline.

I still think the Z10 and BB10 is a great phone so I guess I really have no clue about anything. :)

Impairment of inventory occurs when there is evidence of impairment and it's written down to net realizable value. They are reporting on a quarter so the impairment had to have been considered. And it's not the accounting loss that really matters but the signal that it won't be able to sell its inventory for what they thought they could. The size of the write down also tells us how much inventory they really built up but can't sell.

Do you know when the must write down the inventory. 1/4ly or at the end of the fiscal year? What are the considerations- as I understand it is a estimate by management.

Posted via CB10

Technically you write it down when evidence suggests it's impaired but practically it's done in reporting periods (so quarterly). It's a management estimate based on what they think they can sell it for. Definitely some judgment.

I think TH only gets 50m if he is also removed as CEO.
If that doesn't happen he continues on the payroll as before.

Posted via CB10

I agree... Never trust a german leader... Neither with toothbrush moustache from Austria, nor withouth moustache from Siemens.... Its easy to bweat down the stock: just place (seemingly randomly) half developed products with delay, brake promises, diversify uneasy infos, act back and forth, talk optimistic and act pessimistic and do erverything do disappoint all hopes...

@Dave79 that is just silly. I agree with @md03wx. No one heavily invested in a public company for the long term would want to drive the stock down. There is no conspiracy going on here. Its called rescue attempt. Based on some of your comments earlier, I think you believe BB is useless, so $9 is better than zero. Prem Watsa and Lazaridis are the biggest long term investors of the company. They obviously had high hopes and are probably as disappointed if not more than anyone else as to what has transpired. Frankly I am glad Lazaridis still obviously has a deep passion for this company way beyond dollars and cents. If not he would have bowed out in the same way Balsille did. I would like to see Lazaridis (humbled and rested) back at the helm. TH can move to operations. As the founder of a tech company myself, there is no one that can have the passion to resurrect a company from the ashes than an original founder. There was another guy who did that recently. I believe he was also ousted and humiliated only to return later to his company which was close to death. What was his name again? Steve Jobs or something like that.

You say you are the founder of a tech company and have a passion for your business. Imagine for a moment that you owned only a fraction of that business. Now imagine you believed so strongly in your business and its prospects that you wanted to own the whole thing instead of just part of it. How much would you want to pay for it? Wouldn't you prefer to buy it at a lower price? Can you really not imagine how someone "invested in a public company for the long term would want to drive the stock down"? It goes without saying that people looking to acquire anything want to pay a lower price - that goes for groceries or public companies.

I love Crackberry for one thing, no matter the news they ALWAYS look at the positive side of things. Fortunately, I am not that attached to BlackBerry. I love my Z10 but that's about it. I can actually see that this could be good or very bad. It could mean going private and simply staying the course....unfortunately, this is highly unlikely.
More likely, they would slowly phase out consumer phones in favor of enterprise solutions. In simple English, the phones we rave about like the Z10 would be gone for more practical simple business oriented phones. Yuck! Making the company leaner would be the goal.

Another option would be to make BlackBerry a software only company. Now that would suck because, again, we won't have any phones to rave about, just BBM and enterprise solutions.

The final option is the elephant in the room that nobody wants to admit.... the consortium could just split up BlackBerry and sell it piece by piece.

Any way this plays out it is obvious that BlackBerry, as we know it, is done. We just have to have faith that the people heading the company have a more altruistic motive than a motive spurred by greed. From the way this has been handled so far, I am betting on greed.

Wait, you think these high powered business people should be interested in a 4.7 billion investment for altruistic motives? Seriously?

There is nothing wrong with them making a profit. As much as I hate it, Blackberry is all but dead in the water. What pieces is it you think they would sell off? The way I see it, there are two options. Blackberry starts licensing their operating system and eventually stops hardware manufacture or they manufacture with a different operating system (android). I'm betting on the second.

Smartphones have seen the peak and they will continue to drop in price until they are like any other commodity. There was a time when you needed to spend $4000 for a good computer and it kept dropping. You paid even more of a premium for a laptop. I bought a pretty good laptop last year for $600. There was no one really interested in helping me as there just isn't near the profit in it there used to be. This is just the way the world works. Apple has developed a cheap iphone when a few years ago, they were selling the first iphones for $500 with a commitment. Now you can get a cheap iphone for $100 with a commitment and the phone I paid $200 for my son two years ago, $49. Rumor has it that Amazon is attempting to develop a smartphone for free aka $0.00.

These are all normal business cycles for any particular technology. If you need a couple hundred more examples, they wouldn't be hard to find.

This really is amazing! Now they are going to go dark and go back to the glory days when they could focus on just doing what they do best!! Exciting times ahead!

You are both clearly operating without a clue as to what this buyout means. The only way to go back to the glory days is with 1.21 gigawatts and a modified Delorean. The hardware division is dead. The Fairfax consortium will sell off the rest to pay off the debt and make a little profit. End of story.

What is this debt you speak of?
Their prospects haven't been good of late but they were still running debt free with billions in the bank.

Posted via CB10

Sure he's happy he's getting BlackBerry for a steal of a price. Bbm ALONE will be worth more than 4.7. That's why they had " difficulty " with release

Posted from My all in one beauty Z10


And as far as the news... we'll have the next 6 weeks to mull everything over before its official. Anyone taking odds on Thor staying as CEO?

I like Thorston but I'm guessing he won't stay, Prem and (possibly?) Mr. Lazaridis have their own ideas of where they want the company to go.

Thorsten is Mike Laziridis man. And Mike and Prem are friends. My guess is Thorsten will be around a long time.

This was always the plan assuming BB10 didn't sell.

Executed to perfection. Anyone shorting lower than $9 must be desperate to cover....

Jim and Mike choose Thorstein to be their successor. But it's quite possible that Prem might want to get rid of him and put someone else instead.

Posted via CB10

I'm thinking Thorsten will stay. It'll be pretty expensive to say goodbye to him and all things considered, I think he handled things well, given what he had to work with. Although, I must say I am not happy with the marketing side of things and while he was not directly in charge of it, the marketing dog will fall in his lap at the end of it all.

Frank B. should be fired. He failed. BB10 is a great OS but nobody knows about it. It could not be more plain that marketing failed.

I have no doubt that Thor will depart, right or wrong his work is done I think. I believe he did better than most could have with the situation he came into. I also don't begrudge him anything he receives from the company on departure. I would put odds on Lazaridis, he may have benefitted from some time away

He will absolutely stay for at least a year. He was brought in to orchestrate this deal. I see great things from BlackBerry in the near future.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

LOL.. Tweet from Kevin 3hrs ago:

CrackBerry Kevin ‏@crackberrykevin 3h
Ok, I'm going to bed. Nobody do anything for the next 6 hours, k?! :)


This is really terrible! I believed that the books in this quarter were made to look worst than they are to make this deal look good!

Only if they terminate him as CEO. I think they should keep him. As much as I like Mike & want him involved with BlackBerry, I do think Heins is a better CEO

Posted via CB10

This was his plan all along. Crush the stock price, go private, unleash BB10 on a massive scale!

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

Yup. Hehe... it's delusional to think that this is part of some BBRY master to lull it's competition and customers into a false sense of superiority before unleashing some sort of hidden brilliance.

Just... delusional.

Posted via CB10

Hey laughing genious....put the facts in order.....join the dots. Heins wanted BB10 to launch as it was his baby, then he has done everything possible to make BlackBerry look bad, writes down a billion in inventory, releases BBM as a disaster over the weekend, convinces everyone it's over, stock price goes below the 9 buck mark, we have a privatization move. Once the process is complete, you will see vertical agreements announced, and guess what he has a billion dollars worth of inventory that will get marketed properly. You just watch.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

You spelled genius wrong -- and remember they need 90% of share holders to agree -- idiot.

If Shareholders are getting a bad deal they say no. Prem has an estimated 10% so there 10 percent right there... Im pretty sure everyone else will vote no -- Because no one bought @ 6 to sell at 9 and be happy with it.

They will agree because 9 is better than nothing.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

I had a sinking feeling this would happen. As a shareholder I will not be able to recover my losses or participate in the turn around. Since their last earnings report, I had a feeling they were trying to bash the stock price to go private. And voila! Here it is.

I guess I'll go buy shares in Fairfax with the money the give me.

Yes, definitely mixed feelings from me. Not happy for my investment either, but I do think this is the best prospect for BlackBerry to remain intact and viable.

We made bb10 happened and were used -- Oh well. We can thank CrackBerry for that as well as they didn't report real news but put a sugar coating on everything.

We wanted feature reports, Calls out to blackberry dev's etc, our movement was terrible. But again --

Everyone is a general after the war right?

Did you not notice crackberry participate in the stunt by spurring articles of doom and gloom. They didn't sugar coat anything. In fact I blasted Kevin and the boys for publishing such negative articles all the time.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

Not good news for stockholders. I agree with you.
It could have been worse; we loyal stockholders could have lost everything.

I think they hoped BB10 would be a success, but like all good managers had a Plan B.

And Plan B looks like a corker. Buy the company at well below it's real value (really, it's worth at least $20 a share). And you get a huge cash balance, with a billion dollars worth of phones to give away. Add in restructuring to become the agile company they should always have been.

BlackBerrys problem for the last three years has been terrible negative PR resulting from the greed of those shorting the stock.

The layoffs are sad for the folks that are losing their jobs. But for Prem Watsa, he'll take the company into IPO in a couple of years and make an absolute fortune.

Well said. They can now re-structure as they needed to do, without intense media scrutiny and market shenanigans.

BINGO! But I think it was Plan A. LOL. At the end of the day this is very good news for the future of BlackBerry!

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

That's not a bad idea!

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

Yes I agree. BlackBerry is so much better off being private. OS10 is a great foundation and I like my Z10 so much better than any other phone.

Posted via CB10 1.4.2 on Z10 on the Rogers Network

Agreed. He's done a good job with all of the restructuring and streamlining the company. No reason to get rid of him at least until that process is complete.

I think he did a great job with restructuring and streamlining the company, and he should now go back to his old COO role and let someone with more charisma and marketing savvy take the top spot.

I don't mind if Thor stays if he has absolutely nothing to do with device design and go-to-market strategy.

Posted via CB10

The CMO aka Frank Boulben should definitely be the first person to get rid of. We need a shark taking over that position!

Posted via CB10

Agreed...BB has great phones and BB10 is a great OS..but marketing was an epic failure that crushed any hope of momentum right from the start with the complete bad timing of the SuperBowl ad with no product launch in the US for months.

Was marketing a failure? Or was this the plan all along?

No doubt the courts will decide. It will make a great book at some point.

The ads showed the major features of the new phone...were hip and worldly...had a great song that stuck in your head and summed up the raison d'etre of Mobile and BB10 "Keep Moving ". And they were played practicality nonstop on CNBC and Bloomberg.

Now look at the new iPhone ad for the 5c...goo morphs into phone with chick cooing about new trends...how is that better?

What could Boulben have done better?

Peugeot 505 STI» Peugeot 405 Mi16» Honda s2000»...Chevrolet Corvette C7

Probably not realistic for him to be willing to take a demotion, but your scenario could definitely be the theoretical best case.

It's a common strategy to bring a CEO to restructure and change course...then at the end he leaves (with all of that negative baggage), paving the way for a new "leader" to proceed with the plan.

Considering Prem was the chairman of hte board already Thorsten is very likely staying around because he wouldn't have be brought in in the first place.

lol being bought for around the 2.5bn mark isn't really a good thing.

don't forget that on hand cash stays with the company!

This is a private equity deal. BB is going to be chopped up and sold for parts. Didn't you see Pretty Woman? Richard Gere? Hello!

Of course not the only path. It's an investment firm -- I can't speak for the rest of its holding, but do they have a track record as a turn-around shop?

Maybe, but Prem (a good friend of Mike L) has always said that he sees a good future for BlackBerry in 3-5 years. I would be very surprised if he broke it up......As for the jobs, I'm sure they will be gone B4 the sale goes through. They were probably part of the sales deal :(

I think this is not the case. If BB was in debt, it would only be logical to chop them, sell and pay for debts. Au contraire, BB has some petty cash in bank, right?

Look at the partners in the consortium. None of them have experience running a hardware/software/service business.

They royally screwed us shareholders. They brought out last week's press release so that price would go down and now they are bringing it private for cheap 9$ a share?

Play Starcraft? Join our Channel: C001242DE

Happy you guys got screwed. You are so greedy. Hail BlackBerry.

via CB10 (BB Z10 : BLK : OS 10.1) [ Channel @ C0012477B for BB News, MMA & Tech Updates ]

Shareholders who believed that BlackBerry's stock would would go up above $9/share were greedy? You're happy they are losing money why...?

Gotta look on the bright side. BlackBerry is still alive and kicking. Stop being selfish. Stop thinking of yourself and start thinking of the masses.

Get off your high horse and stop being a prick. Stop being greedy a$$hole.

via CB10 (BB Z10 : BLK : OS 10.1) [ Channel @ C0012477B for BB News, MMA & Tech Updates ]

Look UP ATS Tooling Systems, Look up ABB, look up whatever you want -- most private sales -- [LIKE BLACKBERRY DID OF OTHER COMPANIES... took what they had -- TAT, and others -- then ditched them and sold them.

You REALLY think BlackBerry is alive and kicking.

Get your head out of the sand...

And then while you're at it look up Dell. Do you really think Michael Dell bought back his own company just so he could dismantle it?

You state look up Dell, as in in happened in the past. It happened two weeks ago....

I think my citations are more accurate.

The only reason Fairfax is buying BlackBerry is to make a profit... Call Fairfax Financial a greedy asshole of a company. You're happy for corporate greed but pissed off at individual greed. I don't understand you.

He's a fuckng retard. Look at his avatar. My wife and I just lost a pretty nice some of money. I will never buy another product from this company again.

There are two sides.
One, for stockholders, we took a chance that the company had a good possibility for growth. In recent time everything was a risk.
Two, for users, the product line both phones and services will continue for those who have been faithful to them.

Many companies moved away from putting on BB Servers because they were uncertain about the future of service.
For phone consumers, they too had waited to see how the company would survive, and, they would have a 'dead' product.

Questions: when did you buy into their stock? How much did you pay then? If more than $9, when did the stock start to drop below what you paid for it? How much higher than what you paid for the stock did it go, and for how long did it stay there? Who is your broker who advised you to cause you to lose a nice sum of money?

So answer me this... you'd rather BlackBerry was bought by Microsoft? you'd rather they ran themselves to debt and ceased to exist? What's wrong with you people? Try to look at the bigger picture. Sure share prices aren't $12 onwards but it's better than zero dollars from a non existent company.

via CB10 (BB Z10 : BLK : OS 10.1) [ Channel @ C0012477B for BB News, MMA & Tech Updates ]

People buy stocks to make money...and that is the only reason. Once Apple and Android hit the consumer side of things, and brought apps and games, shareholders abandoned BlackBerry driving the stock down. They bought and sold all the way down. All along driving the capitalization of BlackBerry to the basement and bringing with it a ton of negative press which becomes a self fulfilling prophecy. BlackBerry has done the right thing. Sure some investors are not going to be happy and as an investor myself I too am going to loose. However, for the benefit of jobs, for the BlackBerry experience that has come to me personally and for my business over the years I can handle that. I never invested in BlackBerry for money as much as I did for its survival. This new chapter will see BlackBerry gain strength, perhaps hire back some, all or even more of the employees it is letting go. Spin off revenue to other sectors is a big concern as well. This is the best past.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

Not really... the device was bought and paid for by the user, not the share holders. I think Big Mike and Prem are the ones who should be thanking you for your investment, not us who spent our own money on the devices.

Posted via Microwave Oven

I never said what I would prefer to happen. I don't have any skin in the game. I just don't understand you going off on shareholders calling them greedy assholes because they aren't happy with a $9 share price that would presumably represent a loss for them. People losing money they wanted for their family, or their retirement makes you happy. Way to be.

If people were investing in BlackBerry for future retirement they would be well advised to learn about investing first. the only ones that should have been investing in a troubled tech company in a maturing industry in a turbulent would economy should have a risk tolerance comparable to Evel Knievel.

Posted via CB10

This has nothing to do with what they would rather have and has everything to do with your extreme stupidity in calling Shareholders 'greedy' and expressing happiness at their loss. When you grow up, you'll learn that shareholders monies fund companies...and funded that BB10 device you're so happy with.
You can be happy BB was 'saved' without expressing joy at BB fans here losing a significant amount of money.

LMAO. So one BB Fan tells the Loyal ( Stock Holers @ BB users ) he is happy they got screwed and to stop thinking about them selves and be Greedy ? WTF ?

LOL , God could this get any more ridiculous ?

There's a reason Warren Buffet doesn't trade tech stocks. They're a massive gamble.

And if you're still holding BlackBerry stocks after the past 6 months you only have yourself to blame. Isn't like it wasn't obvious what was about to happen.

I'm long BBRY but I wrote off my investment a long time ago. I expected exactly this scenario. Sorry if you're losing big, but that's the price you pay with tech stocks.

Apparently you have zero clue to how stocks work. You can thank us later for our financial support.

Posted via CB10

How are they greedy? You have no idea how much some people paid for BB shares, especially if they got in when it was at the $40+ level. I would be pissed... You made a dumb comment.

Indeed, it was quite obvious... While I still have big hopes for the BlackBerry OS, I really hope that some people, including the CEO will be sued.

You can't sue the CEO personally for what he did at BlackBerry. BlackBerry is a corporation, and as such the people who run the corporation are not personally responsible for what the corporation does--the corporation itself is responsible.

--Q10 and Canadian all the way! Posted via CB10 on #IChooseBlackBerry10

Well then every news station, tech blog and news paper should be sued for slander as they have largely contributed to the downfall of BlackBerry. On the National again last night they had the panel of 3. All use iphones.....hmmm biased a little and the one lady says she uses an iphone because she can just hand it to her kid and he can play games.....are you FN kidding me? this is how the media kills BlackBerry!

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

I agree. The interim announcement came out of nowhere just to batter stock price. I see years of litigation there.

Posted via CB10

I agree. I missed it by *that* much. Well, now I'll just sit back and watch the bidding but I won't be participating.

It had to be announced by law if it was known to be materially different than what they had predicted earnings might have been. Nothing illegal there.

Posted via CB10

Right. But it *should* have been announced when outlets like the WSJ started reporting on it. Not days later. Announcing AFTER people like Umi knew the news was true is too late. I would agree that announcing around the same time would have been in line. Announcing days later, after the reports had come to be percieved as just speculation can fairly be classified as "out of nowhere" for the shareholders that securities regulations are designed to protect.

Agreed. They reported the results a week early to catch the market unprepared. This made people panic, which shot the stock down. It's brilliant really, and unfortunately that's business. If the shareholder's didn't panic and the stock stayed at 12 or 13 there would be less of a chance that they would have received the sale offer. This shows that everyone here who claims loyalty were really quick to dump the stock (at least a lot of them were) and their lack of loyalty and faith allowed Thor and company to go private without a struggle.

For me personally, I don't own any stock. I wanted to right before BB10 was to launch and it jumped back to $16. I saw that coming, but I didn't have the extra cash. Point being, I don't have a dog in the fight. I own a Z10 and a PlayBook, so that's my investment in the company, which is roughly $1100. Not a lot I know, but the company staying together helps me, and anyone else who has made a similar commitment to them. So if you own a BB10 phone and lost on the stock, at least your phone will still be supported, and that's better than losing everything.

Posted via Microwave Oven

Yup.....that was the plan all along. Connect the dots.....it wasn't that hard....Heins outsmarted everyone but me....

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

What did you expect? Seriously? For the last month the sale possibility was common knowledge, you expected a huge 360 and would get $20/ share? The fact that a Canadian billionaire who is willing to save the company, and move forward on a private level means BlackBerry has a solid future! This is great news for BlackBerry users, and although the shareholders may put up a stink, I think $9 is fair, guessing you wished you would have sold at $12 last week!

Posted via BlackBerry Z10

My holding long with BlackBerry has not cost me over $6,000. While I am glad that BlackBerry has been saved, I wish I would have listened to my financial advisor and sold a long time ago. Oh, well, good for BlackBerry.

I think $9 is fair too. Especially since I bought my shares when the stock was below $7. Not enough to retire off of, but a return is a return.

I don't think it's fair. Especially when you look at how much more their book value is. However I do think that it MAY be the best thing for BlackBerry.....providing that Prem doesn't break it up & sell it in pieces. (which I don't think he will do)

Some of us (albeit a very small minority) made money.
My sincere regards to the majority of stockholders who were long on BlackBerry and lost money.
For those looking for a secure investment: buy silver. The price will continue to climb until it reaches 40.00.

Posted one-handed via BlackBerry Z10

They have 2.6 billion in cash. Fairfax basically bought the whole company for 2 Billion. I believe only the patents are worth more than that. Most private deals are usually 20-30% above market price. This deal is only 2% above Friday's closing even AFTER the horrible news release they put out. Prem Watsa was on the board, he basically just screwed the shareholders.

they are also going to be getting a big chuck of change from the Canadian government for the loses which there are now going to be carrying back to previous years for which they have already paid taxes on.

So should they have waited one week, dropped the news then dropped the same offer? What difference?

Posted via CB10

and Watsa is an insider, he knew the sales we very bad. If the didn't do the early info release then this offer would not have made sense. That's probably why the early release.

Laz must agree , he 6% in a position to be a spoiler.

For who?

The buy out price is above market, with little to indicate any recovery possiblities, so not the shareholders.

And the board wouldn't sell for less than they think the company is worth.

So who is getting ripped off here?

who cares? Blackberry as it stands has zero chance to succeed..people are still not buying their awful phones

BB10 will fly now.....you watch. Dell went private a few weeks ago.....i see vertical partnering!

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

Yes I should be paid... glad you enjoyed the humor.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

The buy out price is only below market because they made it that way. I'm glad, I want to continue using BlackBerry phones for the long haul. For those who lost a lot of money though I can see where they are coming from. If they announced that they were dissolving and no longer supporting their products I would even equally upset, and my investment is in a phone and tablet.

Posted via Microwave Oven

It's best for the company to go private and to build itself back into a profitable company with exciting products and services. It is a big win for BlackBerry.
With many analysts pitching $6/share, $9 looks like a great deal. I don't think it will stay anywhere near $8 for long.


"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.".

Which means what, I wonder?

Fairfax is just a holding company they will make no changes to the way BlackBerry is run. They bought prime restaurants a few years ago and nothing has changed in our day to day operations other than not having shareholders.

Posted via CB10

Okay so blackberry will continue to sink as they are at the moment or will allow blackberry to make changes they couldn't before?

Posted via CB10

You getting fired from your paid troll position? The only comments you have are anti-BlackBerry. Have you nothing else to do with your life?

Now last week's press release makes sense. They just wanted the price to drop..

Play Starcraft? Join our Channel: C001242DE

I think so, I'm losing close to 50% on this deal, and I only hung in out of loyalty, believe it or not. sort of makes me feel a little sick, but oh well sa la vie.

Be loyal to yourself, your friends and you family. Never to a corporate entity. I'm down 600%. Never again.

Yes I am never buying BlackBerry stock again! :)

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

I'm losing about $2k, but not unhappy if we see updates to BB10 and devices.

I'll just think of it this way... I have a $2700 mobile device (my Z10) so my next BlackBerry will be a bargain in comparison (especially if it's a $300 BNIB Z30)

Oh and what about doing something for PlayBook owners after the BB10 debacle? Don't he new owners intend to do something about that?

Posted via CB10

I guess then I beat you cuz I now have a $??,700 mobile device., I'm happy for BBRY, but feel like the share holders were carefully screwed...

Or put it this way: in the grand scheme of things, what is $2000? Really, it's almost nothing. I'd rather this happen then crash and demolish my $2000 car; at least my life is not in danger.

--Q10 and Canadian all the way! Posted via CB10 on #IChooseBlackBerry10

I know exactly how you feel, I lost almost 10X that at $9/share, I was in it until the end, because I really believed in the company turning around, now I still believe that the company will turn around but that it was deliberately made to appear worse then it was in order to drive the cost down, and with no respect for the share holders as TH to adamantly stated before.. Anyway I for one won't be voting for it, unless a more reasonable price Is paid..

That's a classic.....lol

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

Amazing how people can't see that!

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

You want to bet Fairfax rises because they picked up a troubled mobile phone company? There are better plays with less risk. It's not wise to buy stocks because you are enamored with one of their products.

I really have no info on Fairfax but just looking at their recent trades with an average volume of 18500, it looks very risky. With low volume, it can be difficult to get out when the price starts dropping.

I could not understand why BlackBerry sent out the press release last Friday resulting in a 20%+ drop in share price. Now I know why. For all the good it will do with my low number of shares, I will vote against the offer. If Prem Watsa and Fairfax want the company, they can have it for the share price just before the press release. If I was a conspiracy theorist, I would be all over this one.

I was wondering about the timing too. Then I saw the NYT article that Mike Lazaridis was putting together a consortium to make a bid.

The press release may have been timed to either:
a) Favour Fairfax and get the deal closed at a price FF could afford before other groups were fully organized to make a bid
b) pressure interested bidders to move and get their financing in order. In that sense, the FF offer may be a stalking-horse bid and other groups may come forward.
c) The deal with Fairfax was already agreed. The press release in effect simply establishes the market price on which FF will offer a premium to take the company private. Its like putting a house up for sale in a private transaction, but listing it anyways to see what true market value is.

Ok you will get less then. This is the right route for BB. Take your money and buy Fairfield. If BB explodes with profits you win....if you know how to invest, and you truly believe or know there is future value in BlackBerry then follow the money. Never fall in love with a stock. It's business!

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

This makes as much sense as chopping off a leg with the hope of getting a 50% discount on a pair of trousers

No it doesn't, because BlackBerry is not chopping off a leg, it is just ridding itself of shareholders.

--Q10 and Canadian all the way! Posted via CB10 on #IChooseBlackBerry10

The offer to give $9.00 per share is terrible.
There are many stockholders who had faith in the company.
Too bad for those who valued the company for more.

Honestly it was either this or break apart. The company is worth too much to be taken private at 20 bucks a share. Sorry, this was the best we could have hoped for.

Posted via CB10

Stock price was manipulated !!!!!!!!!!!!!!!!!

Announcing that BB10 will not be coming to PlayBook, DURING the last earnings call!
Giving a sneak preview of $1B write downs and $1B loss before the next earnings call!
Announcing that 40% of staff will be laid off and then delaying the BBM launch, just before this crappy offer comes in.

Last week the stock price was well above this offer last week. No way Fairfax would have offered a measly $9/shr last week.

Dammit buy Fairfield.

BlackBerry will survive in the Corporate and Government Sectors! My Z10 is so much better than an iphone!

Bad news for shareholders who had faith in the company.
The $9.00 per share is bad news for those holders.

Valuing a company at $4.7B, half of that is cash, is not fair for us small investors. Once again, the big money prevails.

yeah....faith and positive thoughts....they don't have very good histories as effective investment strategies....I've been out since June.... when Thorsten's lies about "Best selling BB ever," came to light.....WHEW!

I am not a shareholder, I'm sure people will be pissed off. As a consumer/prosumer...whatever you want to call it, my BB will continue to tick and improve (gotta look at the upside)...

this won't magically spur sales...the marketplace has not changed its mind on BB so it really does not matter who own the company

While it won't change the sales, it can change the situation on the stock market (both for good and for bad). Such deals never terget consumers directly.