Month: October 2013

Waterloo-based company, Blackberry is planning to become a private company. By becoming a private company it means that the business will not be able to sell shares in the stock market and shares will be privately exchanged instead. The company’s current largest shareholder Fairfax Financial, a canadian insurance company, is going to purchase the remaining shares at $9 per share. The prices of these stocks seem to high since the stocks at that moment were selling at 8.24 per share and also because the company had previously announced a quarterly loss of $1 billion.

Going public is not the only alternative the Canadian company is considering since they have even considered a possible sale of the company. The company will take until November 4th to find offers that might be better to its shareholders than the one offered by Fairfax Financial.

If the company receives multiple offers, it will have to decide in a bidding war which offer benefits the company and its shareholders the most. Blackberry is currently fighting against many competitors in the industry and it is hoping that the offer that they take will allow the company to be able to compete again with the rest of the companies in the market.

http://money.cnn.com/2013/09/23/technology/mobile/blackberry-private/index.html

Japan Airlines has reached an agreement to purchase 31 airplanes from the manufacturing company Airbus for $9.5 billion. All of the 31 planes will be A350s, one of Airbuses’s more fuel efficient models. This is Airbus’s largest order for this model in the whole year and is the largest order ever received by the company from a Japanese airline. Furthermore, this order gives Japan Airlines the option to purchase 25 additional planes.

This agreement is seen negatively by one of Airbus’s main competitors, Boeing. Boeing has dominated the country’s aviation industry and is now losing one of the main airlines in this market. On the other hand, this could also be seen as an achievement for Airbus since they were able to finally enter this market.

Recently, the aviation industry has been hurt by a slowdown in demand and the high volatility of global fuel prices. However, both Boeing and Airbus have been able to obtain an increase in demand for their new more fuel-efficient models. Ultimately, Airbus’s A350 and Boeing’s 787 Dreamliner are the two fuel-efficient models that have allowed the companies to gain an increase in their demand.

http://www.bbc.co.uk/news/business-24424873

http://www.komonews.com/news/boeing/Japan-Airlines-makes-first-purchase-from-Airbus-not-Boeing-226741791.html

The social networking company Twitter is about to become public and aims to debut with a $1 billion Initial Public Offering (IPO). This was revealed on the company’s own Twitter page by tweeting that the company’s S-1 will be filed publicly with the Security and Exchanges Commission (SEC). In other words, the company has submitted the form necessary to register in the SEC, which will allow it to sell stocks as a public company.

Twitter has increased its revenue from just $28 million in 2010 to $317 million by the end of 2012. Despite this growth in revenue, Twitter still made a loss of approximately $69 million in the first half of 2013. Regardless of the losses, the company’s growth lead analysts to believe that the company’s public offering will get a good response.

It is certain that Twitter will join the stock exchange, but it is unsure which stock exchange. Analysts believe that it is more likely that it will join NASDAQ since many other technology companies have come to the market with this exchange.

http://www.bbc.co.uk/news/business-24392336

http://www.latimes.com/business/hiltzik/la-fi-mh-twitter-20131004,0,3742550.story

https://twitter.com/twitter