Fairfax might not be able to raise the funds for BlackBerry bid

By Bla1ze on 1 Nov 2013 07:17 pm EDT
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That's according to a new report coming out of Reuters who's sources familiar with the matter claim several large banks are reluctant to participate due to the concerns that BlackBerry will not be able to reverse its rapidly declining fortunes. While Fairfax has Bank of America Merrill Lynch and BMO Capital Markets on board, several other large lenders are said to of have passed on the deal.

That's certainly not a good thing for Fairfax but as we already know, Mike Lazaridis and Doug Fregin, co-founders of Research In Motion, may jointly bid for BlackBerry with the help of private equity firm Cerberus Capital Management LP. If the latest information is to be believed, they'll also be joined by Qualcomm though Reuters notes that it's not clear how they'd overcome the same issues Fairfax is facing when it comes to having the funds.

At this point, a lot of names have come into the mix and as Reuters quite understandably notes, no one they reached out for comment has anything to say on the matter so we're all just left waiting to see how things pan out

Topics: BBRY Editorial

208 comments

rlgwood

Just keep it whole. One company.

Posted via CB10

just_luc

"though Reuters notes that it's not clear how they'd overcome the same issues Fairfax is facing when it comes to having the funds."

One possibility is that Mike and company has met with those same banks, and they've decided they have more faith in whatever vision he put forward then the one presented by Fairfax..

Posted via CB10

IJKBB10

Sounded to good to be true that Fairfax would be able to take BlackBerry private.

Hopefully a white knight or a bunch of white knights are able to take BlackBerry private so they can do their thing without the pressure of wall streets expectations and from shareholders.

mathking606

Honestly I say they keep the company together and try to turn the company around but if it does not work they sell the company for parts and everybody still makes their money and more back from it most likely.

Dave79

They need a strong partner that invest in the company as is. Something like microsoft did in apple. Facebook could be a good partner. Next a new management team with no ties to the past so a lot external people that can change the culture. A fat bonus to get rid of all the marketing team from the CEO to the last junior team lead and replace with under 35's hungry talented people. It's a 50-50 bet.

Mike and company seems a disaster - not sure what the interest of Qualcomm is other than walk away with the patents when BBRY's dead.

Varlagas

Mike & co. may be able to pull a turnaround à la Steve Jobs.

Also, the 35- approach is wrong; the company needs a balanced mix of experience and youthful enthusiasm .

Posted via CB10

scribacco

Mike & co are those that ran the company to the ground

scribacco

and how do you get customers back?? at this point it does not matter who buys it because BBRY has lost the customer base..I think potential bidders are only interested in the patents..the rest is just worthless

br14

Maybe Reuters should have taken a look at the Fairfax report issued this week before suggesting they couldn't raise the funds.

They'd have no problems raising finance. They may have had problems attracting investors.

finkmob

Any faith in a vision from Lazaridis is a scary thought.

Posted from my 6230

BB30000

Keep it whole and keep it in Canadian

Posted via BlackBerry Z10

Varlagas

+1000

Posted via CB10

tonyblaze

My only wish!!

Dev. of "Data Usage Counter", "Alarm+", "Recycle Bin" for BB10

k8bushlover

Drum roll, please.

"The Aristocrats!"

Ta-da.

Ferraro161

The struggle

Posted via CB10

birdman_38

As it stands right now, BBRY has no solid bidder with 3 days to go. It is a struggle.

peednus

Thank god u didn't say 1st like all the other clowns.

Posted via Commodore 64

Siya10

Qualcomm! Nice!?

Posted via CB10

SufferWell1396

That's what I'm thinking. Qualcomm? That could prove interesting.

Posted via CB10

seascape

Qualcomm has plenty of resources, that's for sure. They have made big money on the rise of the mobile sector. They have deep pockets.

SufferWell1396

And having a stake in BlackBerry would only solidify their position in the mobile market. All future BlackBerry models feature all Qualcomm chips exclusively.

Posted via CB10

cbvinh

Unless BlackBerry volumes increase, that's not a worthy investment. However, getting a piece of the patent licenses though...

buccaneer54

Having a strong hold in the trucking industry could be a boom to the movement of hardware. Voice comms vs keyboard makes sense to communicate forward to customer and reverse to dispatch.

Posted via CB10

iskaheen

BlackBerry has an image problem. Qualcomm makes BlackBerry legit to Americans. They would immediately stop dissing them. This alone would greatly increase sales.

Posted via CB10

Varlagas

Good point

Posted via CB10

Siya10

I was before Team-Fairfax

NOW

Team-Cerberus-Mike-Doug-Qualcomm
(Team-CMDQ)

I really hope that they will gonna make it!

Posted via CB10

Shanerredflag

Keep it whole...agree agree agree.

Posted via CB10

hf199

There's still promise

Posted via Harry

Siya10

BlackBerry
BlackBerry
BlackBerry
BlackBerry
BlackBerry
BlackBerry
BlackBerry
BlackBerry

Posted via CB10

DJRikko

Definitely keep it together. I'm kinda glad though... I would like more than $9 for my shares. Telling the whole world that that was all they wanted to pay has hurt trading, and even more so considering that the deal was not set in stone.

Going private is still the way to go though.

As it is Zed, so let it be written, so let it be done.

jason9900

Lol so you think a higher bid is going to come in? No!

Except Qualcomm, mike and Co to put in an offer between $5-$8

Posted via CB10

theRock1975

Yeah I'm sure the board will reject $9 and sell for $5.

The company has enough cash to buy it from the public at $5

Posted via CB10

tjross

"Might" being the key word

Posted Via CB10 from my BB Q10

tjross

2/2 "might" isnt news (fact), its opinion (gossip)

Posted Via CB10 from my BB Q10

wiezel007

@tjross news isn't necessarily fact unfortunately.

Posted via CB10 on a Z10

AWB70

I think the buzz around blackberry at the moment with bbm cross platform and a lot of high level enterprise customers showing faith because of the security value has improved vastly as a whole .

Lots of love going on for the devices and the 10.2 update is now starting to show the full potential. All in all my confidence is high for the product and the newer stream lined company. BlackBerry just need a buyer who wants to keep on moving and weed out the people who couldn't care less, rather just looking for a bumper pay out or to try and make $ from its cold dead corpse.

Posted via CB10

nick canada

Agreed

Posted via CB10

New_Z10

Yes the NSA issues might help BlackBerry little. It should come with shrink wrap and a sticker that says "NSA -resistant"

Posted via CB10

abwan11

Shareholders paid the bill, now when all those efforts start to be realized, they want to take it for themselves.

Let me see, you couldn't turn a profit with no debt and now the privateers will do it with financing obligations...says alot.

Posted via CB10

bbfanboi

In this case, most shareholders want profits not growth - they're not in for the long haul. They just want a quick profit and move to some other stock that can offer the same. They want to see the share price climb quickly not have the price stay around the $10 mark while the company is investing in R&D to grow the business. If it stalls for too long, they're out. Such is the case these days in the stockmarket. Large investment houses rule the roost!

NickMcBride

I am a shareholder and i am in for the long haul and i see the potential of the company and that is why i am not satisfied with 9 dollars for my shares.

Posted via CB10 on my  Blackberry Q10!

br14

One things for certain if Fairfax or some other bidder don't offer $9, you won't be getting anywhere near that value for your shares.

As a public company if BlackBerry has to make one more financial report like the last earnings report the stock price will crash even more than it already has.

We'll be lucky to get $5 a share.

Without investment in their turnaround BlackBerry will be out of business by next summer. They can't survive at current revenue levels.

If a buyer offers $9 I'll take it. As a public company they would be decimated by shorters after a December earnings report as bad as the last one (and that's without considering the $400 million charge for layoffs).

JakeTheCat

Unfortunately you have no idea what you are talking about.

There is a buyer for every seller. Who do you think the (short) sellers would be selling to? Of course it would have to be to buyers who believe the shares are worth more.

We should be so lucky that people believe what you've said is "certain" and offer shares for only $5! An opportunity to buy BlackBerry by paying only for its cash and getting everything else for free is an opportunity I would love to have! I pray your crystal ball is right on the price even if nothing you said makes sense (other than how lucky we would be to get shares for $5.)

br14

"There is a buyer for every seller". Not always. And even when there is - at what price would they buy?

BlackBerry has been up for sale for two years. And in August they virtually begged someone to come and buy the company. They already knew sales were through the floor - hence the announcement.

Six weeks later, apart from Fairfax - as yet - they have no other offers. There is no other buyer for this seller.

So BBRY is worth what Fairfax will pay - i.e. $9. Unless of course they don't buy after all and walk away (which I think is unlikely despite the media speculation).

But if Fairfax don't buy the shorters will have a celebration and push the stock further down to where it would have been had Fairfax not intervened. Probably around $6.

And then if it is still a public company, next quarter end (December) BlackBerry will announce another round of massive losses (because of the $400 million restructuring charge as well as massively reduced revenue), and the market would force the price even lower. They currently burn around $500 million a quarter in operating expenses. It won't take long for the cash to run out when you're losing a billion dollars a quarter.

My guess is the price would end up around $5 valuing the company for it's break up value. At which point, the vultures will circle and carve up what is left for the patents and perhaps BBM. That is exactly why Fairfax intervened at $9 - to prevent the price falling to where it became fodder for carve up merchants.

Unless you have cash to throw away on a speculation, or have enough cash to buy the company outright, you'd have to be out of your mind to buy BlackBerry at any price at the moment.

They need to go private to avoid negative market PR and I fully expect that's exactly what will happen some time next week.

BlackBerrys only hope is to change market perception of their plight by having a properly funded buyout, with the buyers injecting enough cash for the company to complete it's turnaround.

Without that cash injection, corporations will not invest in BES10 and BB10 and I'm afraid the brand will be allowed to die. I wish it were otherwise but it is not.

If Fairfax offers $9 I'll take it. Because there is no way BlackBerry will survive as an independent public corporation.

If not enough holders sell at $9 they'll end up with peanuts.

By the way I'm a shareholder and have four BB10 phones, a BlackBerry developer since 2007 and a BlackBerry customer since 2005. I believe the Z30 is the best phone of it's type on the market (with really only the better Samsung phones offering real competition). But it doesn't matter what you or I think when the company is being battered on all sides by market vultures and media ax men.

JakeTheCat

Hey, that's great for you that you have four BB10 phones but a) I'm not sure why anyone would need four phones and b) that doesn't make anything that you've said make any more sense.

Explain to me how there is "not always" a buyer every single time something is sold. Seriously. I don't know if you're just pulling my leg now. Maybe you confuse "offer" with "buy/sell" and you must have missed the fact that the board doesn't sell the company, the owners (i.e. shareholders) sell the company; the board just makes recommendations.

The shares have been up for sale not for two years, as you say, but for every single day for over a decade and a half when the company had its IPO. It's called the stock market. So when you sit there thinking to yourself "there are no other buyers" look up the "volume" of shares traded every day and understand that represents real buyers who are real owners. Collectively they own 100% of BBRY. (Technically it's more than 100%, since "shorts" sell additional shares that they don't own. And yes, those are purchased by real buyers.) You seem to be caught up on what the board and external parties are discussing. Don't let that cause you to take your eye off the ball and conclude that "BBRY is worth what" results from that situation. I know you know this because you admit "they may walk away" but don't follow through with the conclusion that, based on your logic, the company is then worth $0. And it's a good thing because it doesn't make any sense.

You say several other things that I could not disagree with any more strongly but I will leave it to you to evaluate your opinions on your own time. I will only point out as a matter of fact that when you say "They currently burn around $500 million a quarter in operating expenses" I would direct you to the company's public financial statements which show "Net cash provided by operating activities" of $486 (United States dollars, in millions) for the first six months of their current fiscal year. That's a positive number, not a burn. Maybe you see the future and know that the upcoming quarter will be worse than it has been but considering everything else you've said I'm sure you can understand why I question your crystal ball. But that doesn't mean I don't hope you are right! If I get an opportunity to get in at $6 I will have an extra celebration.

br14

"Explain to me how there is "not always" a buyer every single time something is sold"

Not what I wrote. You said "there's a buyer for every seller". There isn't.

I can put my house on the market and announce to the world it is for sale, but if no one buys, I remain a seller with no buyer. There's just no sale.

What that really means is, no one matches my valuation. So I have to drop my price. But sometimes you genuinely cannot sell an item because absolutely no one wants to buy.

If you drove around parts of the US a few years ago, you could see exactly what happens when there is no buyer for homes. In some areas hundreds of homes were abandoned.

Why do you think Fairfax stepped in at $9 when if they'd waited a few weeks they could have offered $7 and bought the company? Because they realised if they didn't do something to support the price, the price would collapse and the company would be pray to vultures. The price has remained relatively stable for six weeks as a result. Remove the offer and the price would drop like a stone.

Even with the launch of new phones, revenue last quarter was $1.5 billion. The corresponding quarter the previous year was $2.9 billion and the previous year $4.2 billion.

The trend is clear enough. Operating expenses (that's not including cost of sales) are around $1 billion a quarter. Work it out for yourself. In relative terms sales have collapsed and expenses are too high to sustain the corporation for more than two or three quarters.

Without a sale next quarter end there'll be a feeding frenzy and the company will probably die in the ensuing loss of confidence among enterprises and consumers alike.

They've already lost carrier support in the US, and the Rogers attitude to the Z30 (a great phone) demonstrates they're losing support even in Canada.

I stand to lose a fair amount if the offer comes in at $9, but I'd like to see the brand survive and in my opinion going private is the only way BlackBerry as a brand can be saved.

scribacco

if you believe the Z30 is the best phone on the market obviously you do not have a clue what the market wants

br14

Really? And you do I take it.

I do know that the z30 is well spec'd and with the power of bb10 has an edge over most other phones.

The Samsung Note 3 is one of the few phones that I'd say is better in my experience.

I have tried a fair few phones and happily tote the z30. But I'll probably be buying the Note 3 also. The z30 is way better than most of the competition. Lacks a few apps but that's not a problem for me. I'm not so keen on watching TV on a five inch (or smaller) screen.

abwan11

Insiders know what is going on, inside, better than anyone. These guys know they can clean up with this, otherwise they wouldn't want it. Shareholders deserve it just as much, imo

Posted via CB10

cbvinh

Most shareholders buying on the market aren't directly investing any funds into the company. Most shareholders didn't pay for any bills.

birdman_38

I'm interested in the business developments more than anything but am hoping this dragged out act will end soon.

Puz_zled

Amen!

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

12kcl12

Anyone expecting more than $9 from Mikie?

Posted via CB10

camera531

I hope the demise of Palm is an example of what NOT to do with a company and platform with so much potential.

Posted via CB10 via Q10

Spades1234

All the players coming out now,...

10

fmb8

Of the potential bidders, almost all of them meaning a tragic death for the BlackBerry we know, Mike L & his consortium seem to be the best play for BlackBerry & more importantly.. US!
I thought Mike L returning would be like going from the fire back to the frying pan but at this point nobody else is even remotely close to having a shot at reviving BlackBerry like his group has.
I, like many others here, have noticed a string of positive moves in the last week or so (BBM, 10.2, Z30) & hopefully it will slow the bleeding long enough for future prospective moves for BlackBerry. They have an incredible amount of talent on board there, just not at the top where it really matters!

Posted via CB10

br14

Watsa is on record as saying he wants to keep the company together and run it as a going concern.

It certainly is worth more together than split apart.

It's a bit odd that Laziridis and Watsa are operating separately. My guess is they'll stage a last minute marriage to save the company and generate positive PR in the marketplace.

Nathan Bael

Just no more co-CEO crap.

FernCommodari

Yep..last minute hitch!

Posted via CB10

henrickrw

We need Lazardis back... he knows the business and deserves a chance.

Posted via CB10

Siya10

Heins go home!

Posted via CB10

axe50

Be careful what you wish for.

I don't want to go back to small screens, minimal storage space and no cameras.

For what he does, Mike is brilliant. He just doesn't /can't / won't keep with changing trends.

Posted via CB10

IJKBB10

As for minimal storage they're still doing that with 16GB of internal storage even with the z30 which should have at least 32GB

br14

You can always add a 64GB SD card.

Nathan Bael

Can you finally put apps on it?

Doolittle2

If he is so brilliant, perhaps he learned something from his previous experience st BlackBerry.

Posted via CB10

Soeasy

He knows the business? He also help ruined the business by being very short sided and somewhat long winded. He's a lab guy and lab guys should always stay in the lab. They often do not make great business men.

JuiciPatties

Wouldn't it be hilarious if the Pittsburgh Penguins decided to purchase Blackberry and move it to their city. :)

robdob123

I love it, split my.gutt reading your comments

GeoYeo Free Local Classifeds, Built for BlackBerry - http://appworld.blackberry.com/webstore/content/29691888

BriniaSona

or the Toronto Maple Leafs. Leafs are much better than the Penguins GO LEAFS GO

DOCTOREVIL8

*** crickets chirping ***

BennyX

well, the banks have good reason to be concerned. Blackberry isn't going to be able to reverse their slide. The days of them making money hand over fist on handsets are over. Unless they start selling security hardened Androids, they're done.

bfunkera

They WILL reverse course and who needs android when you've got the best most secure platform on the planet? I submit...no one!

#IChooseBlackBerry10

Single-finger flickin' so good it make you wanna slap you mamma. Zed you very much!

Soeasy

You should get more people to buy the phone then.

BennyX

if Qualcomm has any part in this, it's because they see the need to diversify. Those Chinese ARM chip vendors are about to squeeze them by the throat, so Qualcomm needs to explore other avenues if they want to continue to be relevant. Qualcomm and Blackberry are actually in the same situation: they once ruled, and now with each day passing they are less and less relevant, and they don't command the same market that they used to. Yes, most smartphones today use Qualcomm processors, but the competition is closing in fast. Qualcomm would do well to team up with Intel for their fabrication prowess/advantage.

chrisstlaurent

They may have downsized enough to start breaking even, and also make the correct order on new phones for future inventory.

BlackBerry for leaders, not followers.

BennyX

I'm not sure if your sig is supposed to be of the 'said with tongue in cheek' line (as in you're just taking the piss), or you actually can believe that with a straight face.. lol

bfunkera

Trolling tonight, aren't we Benny?

Single-finger flickin' so good it make you wanna slap you mamma. Zed you very much!

chrisstlaurent

Sorry are you lost!?

BlackBerry for leaders, not followers.

BennyX

*but i fully expect Intel to move in and gobble Qualcomm's lunch within the next two years. Nobody can beat Intel on performance per watt.

bbfanboi

I'm concerned about Cerberus being involved because they have been known to dismantle companies to maximize returns. It's all about immediate returns not growing the company.

birdman_38

Cerebrus and Mike L appears to be a strange combination.

bbfanboi

Can BlackBerry get any good news these days???

BennyX

you're right, fanboi.. Cerberus doesn't do charity cases. They will indeed dismantle and pick the bones clean.

VR6

I didn't think that they would be able to

cbvinh

The new bidding group should wait to see if Fairfax was able to raise funds before declaring their bid. If Fairfax's bid fails, then the new group can place a bid without having BlackBerry pay a fee to Fairfax.

birdman_38

Perhaps that's what they're doing, along with all the others.

Kevstra

This stupid "sources close to the matter" BS has got to go.

Hey guys, some sources close to the matter tell me that the president wears pink underwear!

This is great. I can make up whatever BS I want and as long as I add: "sources close to the matter" it is no longer libel.

Jonathan Gellar taught the world of journalism it's best trick yet.

Posted via CB10

Adva_

"Sources close to the matter" also leaked 4500 job cuts.

jlbenc

But WHICH President? BlackBerry's, Canadian PM or Obama? :)

Posted via CB10, from my DarthBerry

morganplus8

It doesn't take a dozen banks to raise this modest amount of money. These articles need to stop being posted and repeated on CB.

Please give us a break. Prem could put this on his AMEX card.

Soeasy

99% of these articles have tutned out to be true. Stop with your rubbish dude. Your act is really old now.

If he could put it on his credit card why hasn't he?

Take your time trying to come up with a Rational answer. I'll wait.

MarkyZ10

Why would he use his own money?

Posted via CB10

Soeasy

Don't ask me. Ask the guy above me who likes to say every rumor is crap until they become fact.

AnandTaipan

I think it was a ploy to extract USD200m out of BlackBerry. Bad corporate strategy and Wall Street investors are not stupid. Now with 4th Nov passing on, the clause will be invalid. We can then get more people responding. Only thing this has done is to perhaps establish a bench mark! But I am still surprised Prem couldn't raise the funds. Wierd feel!

Posted using my Q10

J Daniel White II

Here's a link to a post of mine on T - Mobile Support I think you will find of interest / not to mention my complete and utter disbelief in any thing Blackberry . > > http://support.t-mobile.com/thread/56478

Spades1234

This was a given,....

10

skibnik

Perhaps the reason Fairfax is having trouble raising the money is the fact they actually want to preserve BlackBerry not break up and sell off for a quick buck like most large investment firms love to do?

Posted via CB10

IJKBB10

+1,000,000

That's a very good point!

Puz_zled

Yup. Prem is a shark, and a patriot.

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

RubberChicken76

If I were trying to get the assets for a bargain, I'd totally pull this. Cause the stock to drop and come in with a lower offer. Use the rumor mill

Posted via CB10

birdman_38

Why wouldn't the stock rise at this news? (It actually dropped 2% today).

StoicEngineer

There is a problem with Qualcomm joining in. There are only two ways that makes sense.

The first is that Qualcomm believes that they can drive the market to their chips via innovation of a captive company (i.e. BlackBerry). That is, they would have to believe that no one is generally interested in "new" Qualcomm chips, so they are going to have to "show" everyone what they can do through BlackBerry products.

The second is that they are truly diversifying out of the chip manufacturing business.

The observation is that one cannot succeed by competing with one's customers. That's exactly the position that Qualcomm would put themselves onto by buying into BlackBerry.

Posted via CB10

cbvinh

Google owns Motorola. Samsung seems to be doing okay with that.

Samsung makes chips for Apple. Apple seems to be doing okay with that.

SparkyBC

Fairfax won't be buying blackberry but this " " is..

eunoia1995

Oh my

Sporting a White Z10

THBW

This is all based on speculation and an unsubstantiated article from seeking alpha. None of you know what is happening behind the scene. The only thing we do know is that there is more than one bid going forward. So there you go.

Posted via CB10

birdman_38

I believe Fairfax is the only one who has put in a bid so far. In fact, it's only a letter of intent.

JamesPtheNerd

Fairfax was too generous with its valuation. Each department of each office should choose one male and one female to represent them, then wait for Uncle Mike to fire the rest and bail them out.

Posted via CB10. Follow Nerds On Site, your technology partners world wide, on BBM Channels: C001227C4

XDrew42

This is all too much. I'm just gonna pay cash up front. Screw the 4 bill loan. Lol.

Posted via CB10

mICRoMaTe

Don't care if BlackBerry goes private or not, I'm still very pissed at the decision to make z30 exclusive on Verizon! Doesn't make sense at all.

Posted via CB10

chrisstlaurent

Buy it direct and unlocked for $500 off kijiji.ca

BlackBerry for leaders, not followers.

AfterHoursWelds

Yeah, that's why the company is trading at $8....

Posted via CB10

foxfoxcool

BlackBerry will be sold in small pieces.

Posted via CB10 with Q10.

birdman_38

Which would take forever.

blackberryz10w

I'll never give up on my beloved BlackBerry
BlackBerry forever

Posted via CB10

Tranamal

I would go long all the way. I would not sell my shares to PW at $9. I would not sell to Mike L and his consortium either as i believe he is stuck to the past glory. He wants to stick to enterprise only and build physical keyboard phone only. He was dead against BBM cross platform. It turns out it was JB was the visionary one who wanted to bring BBM cross platform and make touch screen phone a couple years ago. But there were a lot of people against him that why BlackBerry is where they are today. That is why BBM goes cross platform so late. Why do you think he quit. Yes Mike L is a very smart guy but engineer/lab smart but not business smart. I rather have JB back than ML.

Posted using my awesome BBZ10

The Aficionado

JB is like the smooth talking corporate exec

ML is the engineer

They made a good team. I really believe that if they were still together at the helm, blackberry would not be in this position today.

I'd be happy to see ML involved in this company again, even happier if JB came back too

Posted via CB10

mobilesync

You are definitely not alone. I have a feeling the taking private conspiracy is failing. BlackBerry will emerge once again as a strong player. Of cause the C suite will change; ownership will be adjusted; partnership established.

3_M4N

Agreed. I hope JB is interested in coming back because the company would really benefit from his vision and experience. I agree with you for sure.

Posted via CB10

The Aficionado

Doesn't surprise me

I suspected that they wouldn't be able to make it happen

Guess we will find out soon

It also suggests that Blackberry's books look pretty ugly.

Clearly bb10 has not been catching on at all, despite being a solid os.

This company can survive and recover but it will require some tough choices

Posted via CB10

FernCommodari

Fairfax deal was a non-starter:
BlackBerry: Looking For a Mutually Beneficial Partnership

http://pfcsystems.wordpress.com/2013/11/01/blackberry-looking-for-a-mutu...

Posted via CB10

Tranamal

How can this awesome BB10 OS catch on when nobody knows about it. There are basically no marketing but when there are some, it sucks. The couple commercial I saw was a joke; there's no theme, no story line explaining what the new BlackBerry device /OS can do but image of symbolism of a guy sliding through mud. I mean wtf, people are supposed to try and figure out what that means?

Posted using my awesome BBZ10

birdman_38

That's the reason why we're reading this article today. It has to change if BlackBerry has any new consumer offerings next year.

chrisstlaurent

Look at it this way, this point in time it's too late to start spending the money on proper marketing, they will burn through the cash like a wild fire through the hills of cali, they missed the boat on that one.
They have to get operating costs down, have a clearer picture of orders for future inventory, and focus on enterprise, before they lose that.
The hardware business still has many options, as does the software. In the end you don't need to be selling 10% market share to be able to make a good phone, as long as the company has downsized. Going private would help the situation - but again if they get their costs in order, with sales, wall street will have nothing to say, and their expectations will be more realistic. They are still making phones, and we have something that works great, and it's not the same as everyone else, so be it!!

BlackBerry for leaders, not followers.

Varlagas

People (coworkers and the like) are very positively surprised when they take a look at my Z30. Comments like "very well constructed; high-quality" or "amazing video quality" (!). But most are surprised to see an "iPhone-like" smartphone by BlackBerry. There is a sorry lack of even the slightest hint of marketing.

Posted via CB10

beantownwindsorite

Just trying to drive down stock so they can offer less. It's too predictable.

Posted from BlackBerry Z10

jcarlos100

Keep it whole

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StickyRice

Who says FF does not have the funding, some unnamed sources?

If you listened to the FF call this morning you would have heard

We have a bid in and I cant comment now. We will know more on Monday.

Whats interesting here is that Prem knew the question would be asked and he had to run his reply by legal.

The LOI was a non binding offer but a bid is a binding offer

FF has the money and had made a formal bid.

Per the LOI BBRY's BOD has until the 4th to go shop.

I assume any other bids received will come in north of $9.50

dannyboy0407

Good. Time to buy more stock

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koool1

It seems odd that Fairfax has not announced the funding is done now. Next week will be interesting.

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AnotherBillJ

I still think Mike Laziridis is the best bet.

Cheers. :)

BlackBerry Q5

Keep it Canadian, keep it whole, keep making the most secure, productive and efficient handsets out there.

BlackBerry rules in these aspects. Bar none.

As for promoting their products, I have seen first hand this evening that the sales people at Superstore do not seem to put too much effort into trying to demonstrate or even promote their products. EXTREMELY sad and insulting to Canada, if I do say so. I would much rather have a Z10 any day, than an S4 from Samsung. The others are mere toys, and do no justice to the words "Efficiency " or " "Productivity", not to mention the severe lack of Security on some said platforms.....

Continuing forward....Blackberry and I.....

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cdobes

+100

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Crmn011519

My sentiments exactly, 'keep it Canadian'. Too much of Canada is foreign-owned as it is. The amount of money needed to buy Blackberry isn't huge, so it shouldn't be difficult to raise that much capital. The government of Canada dropped billions of dollars of bailout money into the auto sector, I can't see why they couldn't do the same with Blackberry to ensure that Canadian-developed technologies and innovations remain Canadian, until such time as a buyer can be found.

Agreed, Blackberry really need to pick up their socks in the marketing department. Part of the problem is that the kids all want bling these days, and the Z10/Z30 phones are really for grown-ups.

I do have to wonder why BMO declined to fund the deal. Was there something on Blackberry's balance sheet (or that of Fairfax Capital) they didn't like?

I recently bought a Z10 and I really like it. There are some things that it doesn't do as well as an Apple iPhone does - and these are minor things, but as a phone, communications and organization tool, it's really without peer. I have to agree that the S4, like a lot of Android phones, is a bit toy-like. The fragmented OS and app ecosystem don't do much to dissuade me from harbouring that perception, either.

FernCommodari

Space Grade M2M Tech in the Palm of Your Hand

http://pfcsystems.wordpress.com/2013/10/26/space-grade-m2m-tech-in-the-p...

Tweet (copy and paste):

Save @BlackBerry from going way of Avro Arrow! @pmharper @IndustryCanada @JamesMoore_org http://wp.me/p381yl-SJ  pic.twitter.com/zETemm5A12

OR Tweet (copy and paste):

Save @BlackBerry from going way of Avro Arrow! @pmharper @IndustryCanada @JamesMoore_org @JustinTrudeau @CBC @CTV http://www.youtube.com/watch?feature=player_embedded&v=rGW76JB90Ro …

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BlackBerry Q5

Posted from my very efficient, sleek and modern white Z10.

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cdobes

Go Mike L!!! Nothing would be better for this country than if he can bring BlackBerry back!

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Rickster1

Same old planted stories that have hurt BlackBerry over the past couple of years. Reuters has been rife with these. At least the Dow Jones strip have been accurate. Down the road, if some intrepid reporter chooses to dig into the BlackBerry story, I truly think that a tale of corporate espionage, economic warfare (US led) will show that Apple leaned on carriers in the US to drag their feet on BB10. That the professional shorters planted negative news stories any chance they could get but particularly if anything positive came out about BB. At this point this story just happens to come out on the Friday before news on Monday in a last attempt to try and shake a few more shares out of uncertain hands to make a few pennies on the $9 offer. There has been a lot that has hindered BlackBerry over these past years but there has also been some powerful forces that have hindered things as well. Remember, Apple and Google are currently up on charges for collusion of hiring practices. Agreement to not hire each others employees so wages wouldn't get driven higher. We Canadians are so nice and gullible. To see the head of the Alberta provincial pension plan say that investing in BlackBerry has to make "economic" sense. Does it not seem a little wierd that there have been no bids for this company?? We are standing by watching us get slaughtered in an economic war that is. Allowing, Google, apple and Microsoft to dominate the collection and control of our personal information and we, as consumers are allowing this to happen. This makes the Avro Arrow machinations look like child's play!! We were played with Nortel and now BlackBerry!!! Passes me off!! This is economic warfare and we have just had our assessment kicked!!! Fricking stupid Canadians!! We fricking deserve to be slaves and suppliers to the US and China!!! Keep us dumb and stupid with low IQ auto manufacturing jobs and suppliers of oil, till ours is gone, then the US will sell us there huge shale oil reserves, at much higher prices. We got too uppity thinking we could have a high tech industry - what were we thinking!!!! Morons!!! Rant over!!!

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THBW

Well, I would have to agree with you with the exception of the oil part. If America is really lucky, shale oil will last 15 years. Getting it out of the ground is down right ugly and environmentally questionable.

Anyways, there are some forces at play that are working against BB. One doesn't have to be a rocket scientist to figure out this one out. Let's face it, governments want to snoop into your private conversations and BB is the only thing standing in the way. Everything else is easily hacked. What is truly scary is when quantum computing comes to the forefront in the next couple of years. Computing power will go through the roof and I have no doubt that government will use it to map your every movement and communication. Just look at the huge computing facility the US security apparatus is building in Utah. In the end our own inventions will be used to control us. Depressingly sad but true.

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mobilesync

I agree with you completely.

tushargkwd

Apple and Google want BlackBerry done with... That's the reason why Microsoft bullied Nokia to join Windows platform and eventually gulped it down.

BlackBerry is the only 'secure' mobile computing organisation in the world. So much so that the German Government has ordered BlackBerry for remaining secure from the prying eyes of the US.

If BlackBerry goes down, the replacement would be Apple or Microsoft, in which case US would have total control of communications.

Its really bad to see that happening to a Canadian company offering great products.

BTW... I'm not Canadian... but I'm really attached to BlackBerry for making great products for the people at work.

I still believe Prem Watsa may be able to pull a rabbit of his hat! :)

Posted via the awesome keyboard on Z10STL100-1/10.2.0.1791 using CB10 App

grahamf

Now I hope Qualcomm is among the buyers. Then they may have a vested interest of using Blackberry as a platform for pushing their latest and greatest chips.

BB_Bmore

The powers that be are at play. I'm afraid the security of BlackBerry could be it's downfall. Transparency, social, informative, Republic.

adonesc

Wow...I didn't see this coming....yeah right! To anybody with a functioning brain cell, the deal the Cryptkeeper aka Pringle Watsahisname and Fairfuck Financial anounced was wishy-washy since the beginning ...and it has now evolved into this growing clusterfuck! Ain't that great?!

Somewhere at an undisclosed location deep beneath the ground in a top secret cave, or bunker, or bunker-cave, Thorsten Heins Ketchup must be sporting a big shit eating grin...his $55.4 million little friends are that much closer to his mummified grip!

Winter Is Coming

YourMobileGuru

You are making the assumption that the new buyers will remove him as CEO and that is by no means a certainty. The huge payout required is actually incentive for them NOT to do so (at lest not right out of the gate). Case in point Dan Hesse is still the Sprint CEO even after the Softbank acquisition.

SplatHead

If that is the case then Fairfax is already following in BBRY's footsteps...

We are going to buy BBRY, take it private, and make it better! ... oops we don't have enough funds..

VictorRight

Why don't we all us users pitch in and buy it?!

QNX posted via CB10

mungee

Sounds like a great idea, but good luck finding a half million people to invest $10,000 each.

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JakeTheCat

I'm curious, who do the two of you think owns most of the company right now?

mungee

I'm pretty sure it's not retail investors. Even if it is, you would have a hard time finding enough to put 5 figures into a kickstarter designed to save a declining company.

jgrobertson

If Lazaridis is involved the company is history. He has no management or marketing sense at all.

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adonesc

Let's begin a Kickstarter campaign and see if we can buy BlackBerry...maybe it will be better if it is a company owned by actual consumers and users! Sure as hell it would be better then all these mentally deficient offers contemplated by all the current characters and jokers involved in this seemingly hapless deal.

Of course that will happen when pigs fly, since all my lunch money and my food stamps cannot possibly pay for that...but one can dream...

First thing I would do as part owner of BlackBerry, I would find Thorsten Heins Ketchup, drag him out if his Batcave into the sun and see if he'll burst into flames or just get a sunburn...

Winter Is Coming

JakeTheCat

The shares are publicly traded. That's what all of this is about. If you want to be a part owner it is a fairly straightforward process: buy shares. If you are serious just find a stockbroker - ask at your local bank if you don't know where to start - and let them know what you would like to do. Once you own shares cast your vote and you're on your way. (I wouldn't count on the ballot giving you any say on the Batcave though.)

Tawroginski

BlackBerry should spend more money advertizing....im photographer and make good pictures of BlackBerry Q10+i wrote allot of positive comments on facebook! www.facebook.com/MichaelTawroginskiPhotographer thats what all BlackBerry users should do! Keep writing good comments,keep informing other people how great BlackBerry is! I do this since last 5 years!

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silversun10

who needs Fairfax when Mike Lazaridis comes in with Qualcomm and Cerberus? of course Fairfax does not need any financing in the case he gets outbid by Mikey...

jay64

your talking one of the main guys that ran it into the ground saving it ?

silversun10

i am saying he is buying it, and besides running it into the ground, he built it up from the ground up. so no reason to get negative here on Mikey. he has accomplished more than you in his life, most likely.

jay64

That depends on what you consider "accomplished".

ricowood

Why does not the government support the BlackBerry as a company. During the financial crisis they supported GM and other auto-manufacturers. Even Canadian and Provincial Govs put some money and they took it back once the industry recovered. Same model can be applied to BlackBerry and government can own the majority shares of the company until the company recovers and gets stronger against the giants like Apple and Samsung. Just my 2 cents...

Maybe CEOs wont be happy when their salaries are tapped by the government officials but if they are sincere about the company's future and keep intact and keep Canadian, why not? I wonder if they asked to Finance Minister or Industry Canada about such model...

FernCommodari

weet (copy and paste):

Save @BlackBerry from going way of Avro Arrow! @pmharper @IndustryCanada @JamesMoore_org http://wp.me/p381yl-SJ  pic.twitter.com/zETemm5A12

OR Tweet (copy and paste):

Save @BlackBerry from going way of Avro Arrow! @pmharper @IndustryCanada @JamesMoore_org @JustinTrudeau @CBC @CTV http://www.youtube.com/watch?feature=player_embedded&v=rGW76JB90Ro …

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Don McAskin

After some good news...finally. I almost wonder could BlackBerry just clean house in the marketing dept. Start, fresh...and get more phones in the hands of consumers, by way of a real marketing plan?? a definite Maybe. Wishful thinking?

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Killjoyhere

I hope so.

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Killjoyhere

I don't see how BlackBerry can compete with android on price. Consumers almost always choose the most cost effective alternative.

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birdman_38

When that's what they're shopping for. Otherwise they choose by brand.

FernCommodari

Cerberus has the funds. They're on the business of buying out companirs.
http://pfcsystems.wordpress.com/2013/11/01/3573/

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Platinum_2

Don't expect banks to get on board with any of this. Private equity is the only way this will get done.

Posted via CB10

jay64

which explains the Friday dip before this news leaked. not that any insiders took advantage of the info before the public saw it...............

Antikythera Mechanism

Theres a reason why the most secure platform on the planet is being systematically attacked. Are you freaking kidding me!!!!!!!! BB10 is a masterpiece of engineering. None of this makes any sense

SoxFan

I would think this would be a very tough deal to finance. It needs a self-funded cowboy. The decline/cliff is too radical. I've been anticipating a break up with different companies buying different pieces. Frankly, that could be a better outcome for customers...not sure.

Posted via CB10

Herbie52

What I think should happen is Fairfax should back down, and Thor should get moved to CFO, and they should acquire a CEO with charisma, like Richard Branson. Blackberry needs to make BB10 exciting, and TH puts me to sleep. It would be stupid for BlackBerry to go private during a rebound, because if they do not allow private investors to ride the roller coaster to the top they will not gain any support if they chose to relist later on.

Posted via CB10

ankush77

one hope,one blackbeery

ankush77

it should stay as a one entity

mikeycollins13

This company is going to be chopped up and fed to Cerberus. The hounds of hell. Sad end.

Only good news is Prem Watsa doesn't get paid off $150M for doing F-all.

br14

According to the article I read the story came from bankers he approached for funding.

They have no idea if he'd arranged funding elsewhere. My guess is he'd have no problem arranging funding but was looking to share the pain across other investors.

I'm sure he'd much rather have investment than loans so he can support the turnaround with cash. Either way, unless Laziridis comes up with an alternative I think we'll see Fairfax attempt to buy the company next week.

d_chosen1

PW and the BOD will agree for an extension.. How will the market react.. well might not move much since the LOI by FFH was to draw interest which seems to be working.. The due diligence period was a ploy to get offers for BB and set a floor on the SP.

mobilesync

To the experts here. Is it possible to take BBRY off U.S. stock market and still keep it public in Canadian stock market? If so, let's do this, Canadians. Then, forget the U.S. market, one that is becoming more and more conservative, less and less innovative. We can sell a hell lot of BlackBerry devices all around the world if we move our focus away from the U.S.

mobilesync

Right now, at this very moment, BlackBerry devices are in high demand in Europe and Asia. Why do we only look at U.S. Get out of there if they don't appreciate. Delist BBRY from U.S., keep it in Canada, and list it in London and Hong Kong markets. Just forget U.S., let them indulge themselves with the antique Droid and iPhone. This whole taking private move is part of a bigger plot to kill BlackBerry because U.S. wants to rule the world and BlackBerry is the only obstacle. Wake up, you sleepy Canadians.

mobilesync

What is the Harper government is doing. This guy always works for U.S. although elected by Canadians.

mobilesync

A post above is true. This is purely an economic warfare.

mobilesync

If I am American I would hate BlackBerry as well. Why the president uses a foreign device. Americans have been trying to get rid of BlackBerry for many years. From their perspective, they are doing the right things for their country. They are the smart people. Look at the Canadians, they just thought this is only about teck or stock - dumb. Look at PW, he only wants to make quick money. When it comes to national interest and national pride Canada just loses to U.S.

mobilesync

And the worst is that Steven Harper works for Americans instead of Canadians.

mobilesync

U.S. can bail out GM, why can't Canada bail out BlackBerry?

FernCommodari

Canada also bailed out GM.

Posted via CB10

3_M4N

I guess BlackBerry isn't considered "too big to fail". That's the only explanation I can think of.

Posted via CB10

mobilesync

To those Canadians who rush to buy the so called gold iPhones - YOU ARE just idiots .

mobilesync

You spend $1000 to buy a piece of medal that only looks good. Do you know with this money you can buy 3 Z10, each and every one works better than an iPhone 5S. Idiots.

mobilesync

To those Canadian corporations who deployed Good. Ask me how to hack you. To the Banks who uses Good, your days are numbered. I am not sure which one will get hacked the first. Maybe all together.

mobilesync

If I know my bank is using Good or iPhone email. I will cancel my accounts immediately.

mobilesync

Ask me how to hack Good.

John Timothy

well sure hope someone steps up and buys the whole company. I tired of all this BS going on. The Way Blackbeery is right now with such an incompetent team of directors. they don't have a hope in hell of surviving if no deal happens. The last two months they have been ignoring customers and have lost a few corporate ones too. The BOD has basically given up and now are just waiting for their golden handshake. It's so sad to see all this happening. I know its business, but Ontario cannot afford to keep losing tech companies. It seems to be the malaise of Canadian companies. they come up with a great product or invention rise to stardom,, then the fat ass CEO and BOD starts to screw up the company until it goes down the drain It has happened in the past and it will happen again.

mobilesync

"then the fat ass CEO and BOD starts to screw up the company until it goes down the drain It has happened in the past and it will happen again"

This would be exactly the cause of BlackBerry's final failure IF BlackBerry cannot live again. Capitalism has its problems. When the ownership of a company is not concentrated corruptions grow. Kicking Jim and Mike out of RIM was part of the big plot to kill it. Unless a big guy or a well managed group takes the ownership of BlackBerry it won't be able to survive. Privatization plan like PW's only kills it quicker unless PW owns more than 30% of the company. But he has decided not to own more. The only hope for BB now is a big company buys it or invests into it to take over the ownership. Hope Mike can pull his plan together. His plan should solve the ownership problem and keep the company public and continue to compete. If he only takes the company private without solving the ownership problem, the result would be same - BlackBerry would be sold piece by piece - what private equity firms doto make quick money especially when parts worth more than the whole.

StickyRice

So there were 2 sources that said they did not firm up a deal with FF.

Big deal. Watsa is also looking for the best deal to finance his deal.

Watsa said they have submitted a bid on his call Friday. Sounds like they have financing.

Posted via CB10

Posterifico

Huh??? This from the WSJ:

"On Friday, Fairfax held a conference call to discuss its own third-quarter financial results. As soon as the call was opened to analysts’ questions, a request for an update on the BlackBerry bid was put forth.

Mr. Watsa, Fairfax’s founder and chief executive, declined to comment and quickly moved on. Investors will have to wait til Monday, when the due diligence period for the BlackBerry deal expires, to get an update."

tushargkwd

PW is not a fool and when he made up his mind to take BlackBerry private, he already might have a financing plan...
His image gets tarnished if he's proved wrong..
And if Blackberry's books are really bad, then he might not get into BlackBerry and will be deeper trouble for BlackBerry...
Wish PW or ML takes over and gives BlackBerry a respite.

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twittysumeet

Well, that's not a good news, but if ex-CEOs might play an important role in bidding and keeping the company whole intact. Let's hope it doesn't affects the services they're providing.

foxfoxcool

Hey the CMO Frank just got married last month with another young lady who is 20 years old younger than him.

This CMO surely laser focused on something.

Posted via CB10 with Q10.

adonesc

You guys do realize that Fairfax Financial had recorded a loss of $571 million dollars...how the hell are they suppossed to have money for BlackBerry?!

We obviously have to see what transpires tomorrow and what Mr. Watsa has to say for himself, but I'm getting the distinct feeling that tomorrow won't be the bearer of good news...

I hope I'm wrong on that front...

Winter Is Coming

dshusha

With so many rumours going around about who might buy Blackberry .. I wouldnt be surprised to see someone indicate that Tim Hortons is interested in the company.

timmy t

Had an awful thought. What if they use this as an excuse to lower their bid price. Say to $7.50, saying that is all the financing they could get?

New_Z10

This is why all the new interest
They can't sell it as a whole so BlackBerry will be parted out! Not good news.

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