Berry Madness
As Blackberry transcends into the private, it’s always helpful to find out what was occurring for the company, and what drove their decision.
The once massively popular and leading provider of smartphones, Blackberry Ltd., has “signed a letter of intent agreement” with Fairfax Financial on September 23, which confirms that Blackberry will be bought out for $4.7 billion. And long story short, all BB shareholders will be delivered $9 per share in this transaction, and that the company will pursue future endeavors as a private company.
With this contract Blackberry will install new management, and possibly better vision, for a chance to turn the tables around. Even if this deal isn’t sealed, at this point there’re worse paths that Blackberry would’ve had to take. Fairfax Financial’s CEO Prem Watsa states, “I’m not underestimating their short-term problems…these happen all the time” (Perkins) and hopes to be the white knight that saves Blackberry from its downward spiral.
Although Blackberry is in the jam for the market of smartphones, its potential as an enterprise has not been completely overshadowed by its past challenges. Perhaps, this was the ultimate reason that motivated Fairfax’s plan for Blackberry’s acquirement.
Works Cited
“BlackBerry Enters into Letter of Intent with Consortium led by Fairfax Financial.” Blackberry. Blackberry Ltd., Sept. 23 2013. Web. Sept. 28 2013.
“BlackBerry to be Sold to Group Led by Fairfax Financial.” CBC News. CBC, Sept. 24 2013. Web. Sept. 38 2013.
Perkins, Tara. “Fairfax’s Prem Watsa: ‘Emotional’ Market Underestimates BlackBerry.” The Globe and Mail. Phillip Crawley, 29 Sept. 2013. Web. 29 Sept. 2013.