BlackBerry sold for $4.7 billion

BlackBerry has been sold for $4.7 billion to a group led by Fairfax Financial Holdings. The news comes just days after BlackBerry announced $1 billion operating loss for the second quarter. Fairfax Financial Holding holds 10% of BlackBerry which makes it the company's largest shareholder. Current shareholders will receive $9 a share, which is a huge drop from the $150 that the stock traded at during 2007-2008 when the company's smartphones were a must-have in the business world. The shares are now up 1.43% on Monday to $8.85.

The deal is expected to close on November 4th pending all regulatory approvals. BlackBerry's board "approved the terms of the letter of intent," and investment banks like Merrill Lynch and BMO Capital Markets are involved in the transaction.

Earlier this year BlackBerry launch their first BlackBerry 10 devices lead by the BlackBerry Z10. Unfortunately the Android onslaught alongwith the dominance from iOS and the strong entry from Nokia Windows Phones have left BlackBerry falling hard. The platform itself is gorgeous and a pleasure to use, but its lack of apps continues to be its biggest downfall. The same fate which drove Nokia to be purchased by Microsoft.

There is no news on how this transaction will affect BlackBerry's ongoing projects, devices and management. Though we will update you as soon as more information is made available.


source - WSJ