Tuesday, 24 September 2013

BlackBerry plans to go private


BlackBerry plans to become a private company in a deal that is worth just $4.7 billion.

BlackBerry's largest shareholder, Canadian insurance company Fairfax Financial, hopes to buy the smartphone maker for $9 per share.


 That's an extremely low premium for a once-dominant company. Prior to the announcement on Monday, BlackBerry was trading at $8.24 per share. As recently as Friday, BlackBerry shares were trading at more than $10. 

But shareholders were skeptical that Fairfax's deal could even go through: Shares of BlackBerry (BBRY) traded slightly below the amount that Fairfax was offering on Monday.
The proposed deal comes just three days after BlackBerry announced a brutal preliminary quarterly financial report, including a $1 billion loss for last quarter and plans to lay off about 4,500 staffers. 

Read more via CNNMoney

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