The smart phone industry has exponentially increased over the past 5 years. With many large corporations such as Apple, Samsung, and HTC all producing their own variations of smart phones. What once used to be one of the most popular smart phones on the market, “Black Berry”, has now had an offer from Fairfax financial holdings Ltd. to go private, as they had lost 1 billion dollars last quarter. Fairfax already owns 10% of the Blackberry stock, but will offer 4.7 billion dollars for the company to go private. With Blackberry only holding 5.1% of the smartphone market vs. Apple’s 39.2%, Blackberry has lost its strength in the market. Going private could save Blackberry from disintegrating and give them more time to create a new product which will hopefully create more revenue for this Canadian company.
In an accounting aspect, will the company succeed in higher growth by removing public share and becoming privet? Yes, in this situation, the money lost based on the demand of Blackberries would benefit the company.
