This site uses cookies to improve your experience and to provide services and advertising. By continuing to browse, you agree to the use of cookies described in our Cookies Policy. You may change your settings at any time but this may impact on the functionality of the site. To learn more see our Cookies Policy.
OK
Dublin: -1 °C Thursday 17 January, 2019
Advertisement

Struggling BlackBerry sold for $4.7 billion

The move comes three days after BlackBerry announced it was laying off 40 per cent of its workforce.

Image: AP Photo/Altaf Qadri

BLACKBERRY HAS ANNOUNCED it agreed to a $4.7 billion (€3.5 billion)  buyout by a consortium of investors who plan to take the struggling Canadian smartphone maker private.

The company said in a statement that it has “signed a letter of intent agreement under which a consortium to be led by Fairfax Financial Holdings Limited has offered to acquire the company subject to due diligence.”

Fairfax, a Canadian firm, is already BlackBerry’s largest shareholder with approximately 10 per cent of its shares.

Under the proposed deal the consortium would offer $9 (€6.70) for each outstanding share, and Fairfax would contribute its own shares in the transaction.

BlackBerry said its board of directors said support the plan.

A firm deal, once due diligence is completed, is expected to be announced by November 4. It hinges also on the consortium obtaining financing.

BlackBerry said it would continue a search for a possibly better suitor in the interim.

On Friday, the company announced it was laying off 40 per cent of its workforce after a dismal launch of new smartphones earlier this year.

- © AFP, 2013

Long-overdue Blackberry makeover to be unveiled >

“We can’t do everything ourselves”: Blackberry to focus on corporate customers >

  • Share on Facebook
  • Email this article
  •  

About the author:

AFP

Read next:

COMMENTS (21)