In a recent report it was revealed that BlackBerry had suffered a huge operating loss of $1 billion which confirmed that job cuts were on the way. This is not surprising as the company has been struggling for a while and there have been talks about BlackBerry taking themselves private, with one report suggesting that BlackBerry’s co-founder could be making a bid for the company he helped founded. However it turns out that Fairfax Financial could be the one to buy the company. BlackBerry has signed a letter of intent with the company that could potentially see BlackBerry sold to Fairfax for $4.7 billion. The letter of intent is not a binding contract per se, but it’s a step towards the right direction and if all goes well, we expect to see BlackBerry taken private in the near future.
BlackBerry shareholders are expected to be paid $9 per share and the consortium is allowed 6 weeks of due diligence to make sure that everything is in the right order before giving the green light. In the meantime BlackBerry is also allowed to continue shopping for a potentially better deal, although if they were to find one, they are expected to pay a termination fee in the event that the newer offer is accepted. If you’d like to learn more about the deal, you can check out the press release at BlackBerry’s website.