Fairfax Financial consortium agrees to purchase BlackBerry for $4.7 billion

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

839 comments

Peter Lee4

omg, just lost a chunk of change

Anonymous2039

I feel for you, but it doesn't do to dwell on it.

--Q10 and Canadian all the way! Posted via CB10 on 10.2.0.1443. #IChooseBlackBerry10

zten

That's it for blackberry

Posted via CB10

Trick_Deck

You don't understand the details of this do you?

Posted via CB10

JBML007

+10000

Posted via CB10

adrenaline_x

So.. The intent would be to keep the company together and grow, and make money on this purchase in the future?

adrenaline_x

Assuming that the only reason they take it private it is to make changes and try and grow their company to make more money down the road.. If they aren't they would buy off the pieces separately.

bfunkera

Go be a Douche elsewhere

Posted via CB10

wincyUt

Why are you taking it out on "adrenaline_x"? He just asking a simple and honest question.

ricocan

The kind you've always failed at.

Drmoe

Woo hoo.

Posted via the best phone ever. The white Z10.

drmike

ANNNNND here comes the so called experts weighing in on their opinions....but you know someone had to get a FIRST comment in there too. :)

SK122387

YESSSS. BEST NEWS I'VE HEARD IN SO LONG

Undbiter65

+3

Posted via CB 10 on my naked Z10 ;)

Spades1234

We new it was coming folks, this isn't bad at all. If your a shareholder you'll take a bit of a kicking.

Posted via CB10

benny4u_06

Who ever buys it...plz make it a better company...

Jim Wolfson

Because somebody might buy it to make it a worse company?

slavka

Yeeesssss! This is the news I was waiting for!!!!! Great!

Posted via CB10

sahilp17

Will my z10 continue to receive support?!?

Posted via CB10

saxxman

Going private looks like a good thing to me and I won't loose much. per share, either!

BB30000

Yes!!!! Best possible news!

Posted via BlackBerry Z10

bbqkid8

Not surprising, but still "Whoa!"

playpen007

BlackBerry get screw again. $9? Just BlackBerry cash alone can pay off this dam take over deal. I have 1200 shares and I will vote against it, period.

felixweber

Better than $2 in a few months time...

Posted via CB10

JBML007

Exactly. I was sure it would go to 5 soon. This the best we could have done.

Posted via CB10

k8bushlover

It's been significantly above $9 for most of the year, the really bad news is released a trading day before the really 'good' news, to make it look like $9 is a great offer ("look how bad it was Friday! $9 is a premium! Best we could have done, we've tried so hard to make value for the stockholders...<wah wah>" )

cdobes

$9? What a rip-off!! anyone feel like this was a bit of a setup? maybe the BBM launch was looking so good that they had to stop it to keep the price down? skeptical!!

Jtaylor1986

Prem resigned from the board last August so how was he controlling this?

XPEH

Last August was a couple weeks ago... Get your facts straight. It is a ripoff. The top guys will benefit, everyone else gets f'ed.

wincyUt

Would you have rather the stock price at $5.00 or lesser? If other bidders think BlackBerry is worth more than $9 they will come forward. If no one else bids then $9 will be more than a fair deal. Unfortunately in life, you win some you lose some.

eshadiq

Finally...

Posted via CB10

BriniaSona

At least msft didn't buy it and tear it asunder

dan d

Now that Fair Fax owns them .Does anyone know how this will work out

battleax78

They don't own them yet. BBRY can still seek a better deal while Prem's folks get 6 weeks for due diligence.

Jtaylor1986

My crystal ball says everything will be peachy.

Bold_until_Hybrid_Comes

Just saw thorsten get on the 401. On his way to pearson international with his 55.6

myckle

And the troll is here again

Posted via CB10

Damatrix02

That 'troll' has been on the forums ALOT longer than your punk a$$ -- Look at the join date newb.

canuckvoip

I'm not really sure what that has to do with anything. It doesn't really make the comment/nastiness any more valid, does it? Friggin' guy was banned recently wasn't he?

Damatrix02

Hes been around for a very long time has seen alot, may as well be a MOD of the forums.

Me as well. I always observed recent poster.

raino

You used to call out people in the forums if you didn't think they were using BBs, proclaim BB was a great thing for the K-W area, etc. etc. What happened?

Damatrix02

I trusted a company named BlackBerry. Who took my hard earned savings and drilled it into the ground.

Wheres BBM? My Features etc.

raino

Lol. Not you. Look at the chain of comments.

Playbook007

Damatrix02......earlier you called me an idiot? you trusted the stock market? It's a place you put your money. If you win, someone else loss. If you lose someone else wins. As soon as you use the word TRUST you lost......i won't call you an idiot though!

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

Jtaylor1986

Who said he was getting the boot? Thor could be Prem's guy for all you know.

FryBerry

Could this have had anything to do with cross platform BBM being halted?

sonicpix

wow. Makes sense giving Watsa's recent move.

SnapzGEG

At least someone sees value, even if it is only $9 a share it is better than $0.09c. The company can go private and do what it needs to without everyday someone looking over it's shoulders.

myckle

All the best BlackBerry! I have STILL have faith in you!

Posted via CB10

MacyJ

Couldn't agree more!
Wish them all the best and still love my Z10

Spades1234

I'm more concerned with their intent with the company.

Posted via CB10

LP_Rigg

Awesome news for the future of BlackBerry - Going private takes them out of the spotlight of Wall Street.

Disclosure: I have no positions in BBRY so I am looking at this not from the perspective of a shareholder.

driller35

Rite On , private is best for BB, as the shorting going on and negativity is what is killing BB, now they will have to cover there shorts

bradu1

+1000!!!

Posted via CB10

earlym

Wow! F-bomb!

Go BB!

Posted via CB10

Peevish

I wonder what Mike L's role in this is.

Posted via CB10

mhydamacka

BlackBerry lives! For a while at least

Posted via CB10

rthonpm

Prem Watsa has been a backer of BlackBerry, and he's no fool so he may see some value here that the overall market doesn't see. If nothing else, the pressure will be off BlackBerry during their attempts to pivot. I had a strong feeling this would be the outcome of the announcement of the layoffs and the change in strategy.

fragment137

Awesome!!!!! BBRY going private could save the day!!!!

bbfanboi

$9/share is a significant discount considering the present cash and assets of the company. Before Friday's announcement, the stock price was over $10. Nonetheless, it is a step in the right direction for BlackBerry to avoid the stock manipulation going on and pressures from many greedy shareholders for immediate profits and gains. To properly grow a company you cannot be at the mercy of investors who look at things like R&D as a waste of resources.

Jtaylor1986

A going concern entity is going to be valued at some multiple of earnings. Their assets don't really matter.

glennster28

As a shareholder this deal stinks.

David in Durham

I'm sorry some stockholders are disappointed, but for the rest of us this is wonderful, wonderful news.

hkkelvinlee

It can be users good news. There is no guarantee what new buyer will do.

Posted via CB10

insurancebroker

How is this wonderful news? Tell me how Fairfax will change public perception of the BlackBerry brand? How will Fairfax sell millions more phones and get 200,000 more apps into the ecosystem? Until I see a coherent strategy and plan, nothing has changed. Remember, Fairfax/Prem Watsa own a piece of BlackBerry and were on the board. How did that work out?

kupfernigk

My guess is they will abandon the US except for large enterprise customers, and focus on emerging markets. Without shareholders, the pressure to waste resources in the US goes away. The apps may come, but they may be in Kiswahili or Tamil.

drkpitt

Good that the company won't disappear. Bad for shareholders who kept the faith and took a huge bath on this, me being one of them. To each his own, we did our best.

Posted via CB10

snowbunny43

If Blackberry would start delivering and keeping their promises things would`ve been different. The fiasco that is BBM4ALL was incredible. I`m sorry, but why would they offer this if they weren`t ready for it with their servers? All this does is keep trashing the BB name more than it already is. Is that even possible?

felixweber

I think that was because of this... canceled probably.

Posted via CB10

Jtaylor1986

Think back to a time when BB ever delivered anything on time and good quality. It hasn't happened since I was following the company the last 3 to 5 years.

Brandon Orr

Still happy even though my stock is unfortunately at a loss :(

Posted via CB10

bobshine

Damn! I wonder how much info Fairfax had about the previous quarter write offs. Did they wait before making their offer? They are getting BlackBerry for really cheap, 4.7 billions for 2.6 billions in cash and lots of patents.

However I have to say that this is really good news.

Posted via CB10

BriniaSona

I swear if Mr watsa closes BlackBerry I'll storm his office and throw storms at him.

Jim Wolfson

Why would he and his company spend $4.7B to close it? BBRY is doing a fine job of heading there for free at the moment.

BBVegasGirl80

+1,000,000

Sent from my sexy white hot Z10 in Sin City ;-)

Mike Wadas

I guess your not vested in this company? Prem is ripping off investors. $9/share is not an offer it is a palm greasing.

avidberry

What does this mean for BlackBerry (stupid question)

+1

tetonica

finally some awesome news!

jrohland

This is the best news I could have hoped for.

cool_beans

$9 that sucks for you shareholders

Posted via CB10

playbookster

Depends at what you bought at.

Posted via CB10

DarrenHD

$9/share is B.S - a slap in the face to shareholders. Maybe Microsoft or someone else will offer more. There is that possibility.

Mike Wadas

I hope Lenovo buys them. I have a great deal of respect for that company, maybe they can rebuild Blackberry's image.

khehl

Helll yeeee

Posted via CB10

zten

Prema watsa is a scammer

Posted via CB10

raino

He made an offer, they accepted. So who's the scammer again? Lol

Damatrix02

He stepped down from the board a month ago -- Not Sketch?

raino

Probably is, but I don't know what the regulatory requirements in such matters are. I'm sure the "Warren Buffett of Canada" probably knows, though, and even if he had wanted to do this for a while, he knows how to go about it legally.

BlackberryFan777

Great news! This doesn't save the company, but it lays the foundation to grow outside of the constant public reporting requirements. No company can transform itself the way BlackBerry needs to while staying oared to the short-term needs of the market. When they return to stability, Fairfax may take the company public appropriately.

Posted via CB10

Genghis2k3

Hey Lookie there! A comment lacking the prerequisite gloom and doom, or euphoric sentiment. Get out of here with your level-headed wait and see temperament. No need for that here.

Damatrix02

Just wait to Chris Umi - to say that BBM halt was a good move. You dont get more level-headed than that :)

jpvj

Probably the best for BBRY at the moment. No more quarterly earning calls causing bad news to spread in the media.

Hopefully BBRY can have time to sit back, do their homework and start delivering without the stress of "underperforming".

Best of luck to all of you "BlackBerries"!

BlackberryFan777

Exactly. Great comment.

Posted via CB10

trwrt

Losing money is losing money, whether you have to tell anyone about it or not.

jpvj

100% correct.
IMHO a great deal of the issues is due to negative press. The quality of the products are good (not perfect) and if not every reporter repeated all the negativity or even said something positive they would have sold more devices.

Some users will select other devices for a variety of reasons - lack of apps etc. but perception of the brand is a real dealbreaker for BBRY.

EMBOLDEND

I think Fairfax is getting a steal, but I'm happy to see a deal in the works. Really would have preferred an investment or purchase by IBM - it would have made sense in many ways - but happy to see BBRY has a lease on life. Waiting for more details!! Thanks, CrackBerry, for your diligence in the matter and keeping up with this story!

Sager-Naji

I think that's good news

Posted via CB10

andrepellissari

good for the company, not so good for the stockholders.

Mike Wadas

You mean good for Prem, and Thor?

mmmmm127

Hope this flushes out a better offer

2stix

This is BS!! Watsa says the company is worth 40 bucks and then makes sure BlackBerry screws everything it touched to run the stock price into the ground intentionally! What a friggin scam. I don't think will pass!

Posted via CB10

glennster28

That's exactly what happened.

Mike Wadas

100%, conflict of interest not averted!!!!! Hello class action!!!!!

itsyaboy

Holy shit, didn't expect to see that so soon! I mean, November is still quite a few weeks away...I wonder if any other parties will actively pursue BlackBerry.

I think this is suitable option. Let's hope BlackBerry can get the rest it needs to ensure laser-sharp focus on maintaining and executing their strong points and turn profits up again. After that, let's slowly and steadily refocus on the 'bad' points...

Mike Wadas

This is a bad point, Prem is running away with a gold mine!

SecondLight2

and people cheered when Thorsten Heins took the reigns and look at the shape BB is in today? Premature to be celebrating perhaps?

BoldBigWorm

Yeah whoever buys it needs to restructure it from the TOP. They continue to drop the ball. They should stick to a cpl or few devices. Not releasing flops left right and center...

Posted via CB Q-10

d_chosen1

9$ a share no way, I expect the bid to go up to $12 ;)

breakingpoint0

BlackBerry can start working in peace out of the public's eye for a bit. Good things should follow by allowing them to concentrate on the product instead of what makes the investors happy!

bonwill

Yey.. That's a GOOD NEWS for all Blackberry fans!! Its time to arise and shine!! Blackberry..

d_chosen1

Boom!! Shorts got squeeeezed

trwrt

How so? They can easily cover their positions at just barely under the offer price.

Mike Wadas

If they haven't covered by now this news would have made them sell and the stock would have dropped even further. This tells me that the shorts are either long or out. This realization should increase the stock value.

varun wasan

The Future Begins Today. Good Morning BlackBerry..

IChooseBlackberry10

Tumacana

YES!!!!!!!!!!! this is great news. Trading will commence at 2pm again. Lets see what stock go way up now. Higher than the $9 they are offering for sure. Oh man...now if we could only get the whole BBM debacle sorted...we're back in business!

Q10Nutter

I am a huge supporter of BlackBerry. I just got screwed by Prem Watsa. But I guess the silver line is I don't have to live in a google and apple world.

Q10

Mike Wadas

If this deal goes through I might give up on technology altogether! This deal is extremely shady, and for Blackberry's sake it better not go through or there will be alot of investors looking to sue.

BeautyEh

Finally - our boys have a chance now. Going private made the most sense after all. No more WSJ leaks and pointless hate. They can restructure and move forward. Prem came through after all.
For any Mad Men fans out there, what does Don always say? "If you don't like what's being said about you - change the conversation. "

Posted via CB10

thatplaybookguy

Kiss your leaked os's goodbye.

playbookster

I will be voting yes

Posted via CB10

hundoman

There is nothing Blackberry could do with the way the press was doing everything to disparage the company and thereby discourage any hope of a sales turn around.

I just hope we don’t end up in an Apple and Google only world because businesses and consumers deserve much better than what these two companies have been able to bring to market.

ice4u2

No suprise. If you still own stock...I'm not sure I feel sorry for you. The day it was announced that Alicia Keys was the Global Creative Director and she further tweeted that fact from her iphone...I cashed out. Been smiling ever since. $9 a share...that's rough.

Genghis2k3

Yeah...everybody knows, it was Beauty that killed the Beast.

You are quite the shrewd investor.

DecAway

Hooray!!!!!

Posted via CB10

tonyrenier

Well, now we know why the profit warning was issued. Current price of 8.23 makes nine dollars look good to most who will be losing their shirt. Prem is a money man, hard to believe that the "Premi" wasn't to get the stock price in line with the now public offer. I sold mine at 11.00 a couple of weeks ago at a 2.50 loss, now I'll move on to Renewable energy. Still glad I got my Q10, hope the millions of us with BB10 get treated with the respect we're due.

playpen007

If the deal goes through, I got screw from them since I paid average price around 12 to 13 dollars.

greenberry666

Prem Watsa, Chairman and CEO of Fairfax, said: "a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world."

So that's the end of BlackBerry phones then?

:(

Fable Publishing: C0012255F

Emaderton3

That's how I interpreted it too :(

TioPepe78

I guess not, they will reduce the portfolio and the devices will be niche focused. Maybe the bad thing is being a niche device maybe wont ever get the big apps on board.

tonyrenier

At this point, I think that's quite a leap. Possibly, no consumer oriented phones and a different pricing structure. These may be our last BB phones or we'll be paying considerably more in the future. I'm just happy that I'm not lugging an iDroid around.

Mary Ann Clark

Is this a good thing for us BlackBerry customers?

Posted via CB10

YourMobileGuru

Yes. See my post below.

Posted via CB10

Bold_until_Hybrid_Comes

They already effectively announced the exit from consumer market. Do you consider that good for you? Its the best thing that could have happened to keep BlackBerry the company as close as possible to "as we know it", but it will never be the same.

greenberry666

Not good if you want a BlackBerry phone

Fable Publishing: C0012255F

Mike Wadas

I already have a Blackberry Z10, and this will be the second time I got ripped by this company if they abandon their devices. I thought they learned their lesson with the Playbook.

chadnichols

Exhale. Smile. Rebuild. Your Fans are with you BBRY!!

Posted via CB10

YourMobileGuru

Yep this is pretty much what I expected to happen. The company once private will be our of the public scrutiny having to air all of their dirty laundry each quarter and can focus on their products and accelerating the deployment of Blackberry 10...any word on weather they are retaining Thorsten or retaining him?

Only negative I can see here is if they bring back Jim.

Posted via CB10

insurancebroker

Please explain to me how being out of public scrutiny sells millions more phones, puts hundreds of thousands of apps into the ecosytem and puts BlackBerry back in 3rd, 2nd, of 1st position?

jpvj

Going private does not resolve it on it's own, but it will give BBRY som relief from all the negative reports from the hedgefunds and so called analysts. That part *could* help providing a better public perception of the company.

Changing the perception of the company will take years, the BBRY has to provide excellent solutions ON TIME.

Hopefully the new owners will provide valuable input and help making the company profitable.
If the succeed they are in for a huge profit. If not they just have to sell whatever is possible and face a loss.

jeffydude05

They can still break up and sell pieces of the company after they acquire it...

digitalman101

That is true.

Posted via CB10

oldmanjenkins

Let's hope this deal helps so that the engineers can focus on keeping the BlackBerry alive and relevant. Granted to a niche market but then again VW is very profitable and considered a "niche" player in the industry.

Posted via CB10

Coach57

VW is the one of the top 3 automakers in the world.

milfou

LOL, VW is the 2nd largest car manufacturer in the world and plan to be on top by 2015.

Volkswagen Group sells passenger cars under the Audi, Bentley, Bugatti, Lamborghini, Porsche, SEAT, Škoda and Volkswagen marques; motorcycles under the Ducati brand; and commercial vehicles under the MAN, Scania and Volkswagen Commercial Vehicles marques

ballsjr

So what now?

Posted via my white Z10. LG banter- blackberry bold 9900- Z10

oakvillerelopro

Can't have my shares for $9! Friday was a screw job to make today look good. Nokia has surged on Microsoft purchase. Call me when price tops $15 or get lost BlackBerry

Posted via CB10

AfroZepher

Fairfax ain't a Microsoft. . . not the same thing

Mike Wadas

I 100% agree! They are not getting my shares for $9!!!!!! If this deal is finalized I will be looking for the class action sign up. This is a palm greasing between Prem, and Thor. They will both profit from this gold mine while leaving the long investors high and dry.

gmsm

Agree

Posted via CB10

Jerale Hoard

I'm sorry for your lost. :( Sad day for shareholders.

Posted via CB10

Markiee

Blackberry's journey ends here. R.I.P

jstirtzinger

Are you high or just don't understand what's happening? This has 1) stopped speculation about whether they have a future, 2) Set a not to go lower than floor on the stock price to stop the slide and 3) BB can still look at other offers that come out of the woodwork now that a floor price has been set. This is the best news possible at this stage.

Dhamp2g

This will be a enterprise company from now own or it will be nothing at all. You want get a bbry unless your your company offers it.

club404

So lets run the conspiracy theory for how to acquire a company on the cheap.

Step One. Have the board issue guidance prior to the official date, that confirms way lower revenue expectation, and a huge write down to come... driving share price down further.

Step Two. Get board to announce layoffs of 40% of staff to further shake consumer confidence.

Step Three. Totally screw up launch of cross-platform BBM service that has been one positive in the BB brand...again driving price down further.

Now offer investors a price per share of pretty much what the asset/patent value is.

Success!

Congrats Prem

allanabellard

+1000000

Was thinking about that since they released the revenue expectation!!!

BlueTom316

Cheap, ? Nokia ARM was purchased for $5 billion, and $2.3 billion for its patents by Microsoft. $4.7 billion for Blackberry is a great offer. No disclosure of the patents and was not mentioned in the offer.

XPEH

Well, Watsa is a "successful investor"... he actually managed to be successful here: F up the company, buy it for scraps, then sell it for a higher price... i can't believe it but i'm all but sure the deal will get approved simply because the interested parties (read Watsa) hold enough shares! WOW!

bbry4life

I completely agree with you. Heins and Watsa collaborated on this scandal to sell the company off for cheap.

Dhamp2g

Is it a conspiracy or has the company continued to fuck up everything for the past several years? I would say its the later.

farmwersteve

Correct. This is terrible for the average small time investor and good news for BlackBerry.

The news dropped last week to weaken the share price to get Perma a better deal

We shareholders got the shaft

Posted via CB10

travaz

Stock (any Stock) equals Crapshoot. You just came up 7's!

Mike Wadas

...I guess I will be signing up for the class action. If this isn't a potential insider trading, I'm not sure what is. They killed the stock by not crushing the bad press, and ignoring effective marketing for their devices. $9/share is a joke!

craigdh1

Going private is the best thing BlackBerry could do... it's not over people, stop the wining and let's get it going.

Posted via CB10

MiFrich

I know I keep repeating myself, buuuut Chris? :)

I thought they will, follow Dell, but I was wondering how will they pull it off.

FuzzyFish

Is this really the best thing for BB? I really hope Fairfax doesn't just think the ship can keep sailing as it is and everything will be fine.

hoodoo1966

The letter of intent states that other offers can be considered by BlackBerry. If you guys don't like the price, put together your own consortium and make a higher offer!

SC457

Great move, go private, restructure, and get the ship back on track! Get out of the public eye and stop all the bad press leaking on a daily basis!

raino

I would appreciate Chris posting an article. Something I'd like to know is does the fact that Watsa was on the board have any implications as to whether this deal will be approved or not?

Robin Lim

Will the buyout mean that the people who were supposed terminated will keep their jobs?

Posted from my Zed 10

jeffydude05

No, probably part of the deal. Usually the company acquiring doesn't like to lay off the people.

matthewgreyling

We all knew this was coming sometime...

Posted via CB10

Driftdreams

All of you guys are talking out of your asses. The fact of the matter is, the only ones who benefited greatly from this move are the CEOs. Thorsten just made a fortune. Aside from that, the company will likely license and focus on BBM for ad money. The hardware and patents will be broken up and dispersed to various antities. This is the end... Last call... Curtains closed. The only things part of the 'BlackBerry' name that will survive will be BlackBerry Messenger... Till, like BlackBerry, it becomes passé. I'm a huge fan and it pains me to even see it come to this but its better than lying to yourselve and believing that there stand a shot in hell of BlackBerry surviving as a whole. This is it... Breathe in and deal with it.

@BBMarnel

RubenDM

That is why there is now a bbm logo on hamiltons car... they knew it, screwed the average investor.

jstirtzinger

Wow, someone needs a hug. ;-)

BlueTom316

***execution of a definitive agreement , some companies have 5 - 7 year contracts with BB10 servers, under the current regulations the company is being purchased as a whole and that means must remain as a whole until all contracts are fulfilled. So Blackberry is staying unless the company purchasing BB goes Bankrupt, but then again another company to acquire BB during that phase is a guarantee.

SirJes

Great!!! :D
BlackBerry Lives On!

Icarus3000

This probably good for the company overall, but a lousy deal for shareholders. The timing is very suspicious too with last week's announcement and the non-rollout of BBM to iOS and Android over the weekend.

tgjb

Poor Kevin, he won't be able to sleep...

RubenDM

To bad for me, should have know they would screw it up for us shareholders.

TioPepe78

My opinion this is good, the company will be kept as a whole and not divided, we will still get Blackberry devices and BB10 experience for years to come even if the base of users gets reduced from the actual base.

Blackberry will be out of the eye of the street and people inside the company will work more calm.

greenberry666

"Devices" doesn't sound like part of the plan.

Fable Publishing: C0012255F

TioPepe78

Well, that's a real option, but I hope they keep it, my guess is they will after all, we'll new about it now sooner than later.

BBZ10wannabe

Hooray!! I was hoping for this as the outcome instead of the many horrible alternatives. Kevin, is this cause to celebrate? How about a free Z30 for the first 200 posters of this thread :)

greenberry666

Great idea. That's four for me do far.

Fable Publishing: C0012255F

NFLPLAYBOOK

Finally BlackBerry will go private and end this ridiculous media fiasco. Now the company can grow.

Good OL MC

Welp, the CB team is going to be especially busy for a few months. Good luck to you and I hope this goes better than Palm.

chrisstlaurent

I'm voting NO, as a share holder. BBM could be evaluated on its own for 2/3 of the sale price. BS. I'm happy that they might go private, but pissed at the same time. Give me Fairfax shares instead!

BlackBerry for leaders, not followers.

Gunner24

I'm right with you. This is the biggest rip I've ever seen in the corporate world.

Godgass

True that they made those cuts and lowered the price (cuts were going to be made anyway) so that they could buy-out the company and go private. Sucks for the investors but investing is a risky business in itself. I think this will definitely save the company and limit the vultures and nay-sayers to talk about the product and not the company, which we all know is a great product. Time is still needed to restructure, but the general public will not know what is happening. This is what I was hoping for and saying to the family and friends for the past couple of weeks.

Bold_until_Hybrid_Comes

trading resumes in 2 minutes. Lets watch this

JAYW64

If the sec was capable of doing their job, upper management, certain board members, M.L. , prima watsa and others should all be indicted for illegally screwing the shareholders...... this crime has transpired right under our noses...... so sad that this can pass like this...... it's just obvious.....

Posted via CB10

chrisstlaurent

F,ing scam is right. So we hire that terd to sell the company for a discounted price to someone who was on the board. What happens to the money of 3.1 billion?

BlackBerry for leaders, not followers.

harsenik

Whats next now? What this mean for most consumer ? Any changes? Less? More support? A drop of apps support from devs? Does anyone can reassure me on this?

Posted via CB10

Playbook007

I knew it.....Heins been crushing the image to reduce stock price.

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

Spades1234

If someone out there believes it is worth more they are more than welcome to bid.

Posted via CB10

Josh_Gooner

So the inevitable is upon us at long last. A sad reality, but can't say I'm overly disappointed seeing BlackBerry under new stewardship.

Posted via CB10

boldbb10

Prem steps down. They posted earnings then the shares got hammered on Friday. Prem then offers 9 bucks a share when the stock was halted at $8.23 on the Nasdaq. Is BlackBerry really worth 4.7 billion? Then TH gets a buy out of over 50 million. This my friends is how the rich get richer. This was all planned when TH joined BlackBerry. TH was just a pawn. Man I wish I was that pawn. Lol. So what now Prem? I believe this is a turning point for BlackBerry. Finally we get some real leadership.

Posted via CB10

BlackBerrari

A chi lo dici...

Posted via CB10

jhumel23

I think this is good for BlackBerry to be able to survive from all the bullies outside. Keep alive and strong BlackBerry I'm with you! :)

Jonesy1966

This is precisely the outcome I was hoping for! Well done to all involved.

damien kupuku

Now it take sens what happened friday with bad news and the big layoffs reported from Waterloo, that made share plunges and so Fairfax can make this insane offer ! 9$/share

iamrauu

Hope this keeps the brand alive meng!

Posted via CB10

keypad

It was gonna happen one way or the other.

Still, things need a massive shake up internally at management level.

parthokarki

Any idea when we can see bbm release?

Posted via CB10

trinipoco

I purchased shares at 10 and sold at 15, that's the way it works. Had I held out and lost money, then I would have only myself to blame.

Posted via CB10

k8bushlover

This is very true, although it doesn't rule out the deliberate manipulation of the stock price through the timing of the news Friday and today, and the BBM rollout f/u over the weekend (and continuing lack of news thereof.)

When was the offer from Fairfax put on the table / signed? That's what I'd like to know. Not that I can do a thing about it, as a small-time shareholder.

XPEH

I'm sure they covered their behinds. I'm also sure that the deal wasn't reached overnight. The timing is just way too much to be a coincidence. To think that I will even consider buying another Blackberry product after all this company did to their loyal in the last three years...

The_Merovingian

Well I held on for the ride this long, might as well see what's next. I feel they may drop the consumer market altogether and stick with Enterprise. Although I have a corporate account, I feel that the downside is that it was the consumer side that "kept them moving". If they only focus on Enterprise then I feel they will go idle again.

JAYW64

I will vote no as a shareholder. Shareholders ought to ouster the board and all the other greedy bastards in collusion against the shareholders...... what a pathetic crime....

Posted via CB10

SpideysHero

Amazing! Canadians unite!!! We keep our company... and In Toronto too!!!

Hooked for 10 years now.

mcstravi

Is $9 too low?
Maybe, but if no one was willing to pay more than this..and BlackBerry was in a death spiral, than it's the right $ amount.
Stability to this company is CRITICAL to any chance it staying alive.

jstirtzinger

There is a 6 week window to entertain any other offers.

Joe1004

Bring it on. Now they can concentrate on the business instead of what Wall Street says they should or shouldn't do.

Posted via CB10

Himanshu Mehta

Good decision altogether before it loses entire grip of business, god bless bbm

Posted via CB10

hf199

Yes!

Posted via Harry

Tumacana

and just like that shares are up 4.67% 9.09. Woop Woop!

CrackberryQ

Going private means no more "intentional fuckups" to drive stock down, means less negative media coverage driving away private corporations from taking up blackberry solutions, means capability to actually risk and venture, explore and innovate without shareholder pressure!

Great news for the company, seriously disgusting news for the shareholders,

It's quite obvious that TH and his team drove the stock down, and hence hurting the investors, I don't know if that was the right move to entice the only buyer he had, or just greed to get his 55 mil, and I believe the later!!

In all cases TH and team need to be questioned before their payoff to determine if they acted on good faith or pure greed!

Crackberry Q10 / Playbook

ballsjr

I don't care!! I love my z10. I hope Fairfax continues with BlackBerry 10!

Posted via my white Z10. LG banter- blackberry bold 9900- Z10

asantucc

Another deal on Wall St., is all. Fairfax will buy hoping for no biding war and then break it up in pieces. These guys don't buy distressed assets at a premium, so yes, $9 a share is a discount to what it is valued and a "White Flag" for BlackBerry. Let's be honest, it's not like Fairfax has a hard-on for BlackBerry.

Posted via CB10

Shlooky

Those who think the company will stay whole got another thing coming.
Fairfax will break up the company and see it for parts, as they cannot keep losing money.

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