Yesterday we reported on the woes of Blackberry. There was also speculation that Blackberry would be up for bid to try and save the struggling mobile company from sinking into oblivion. Today Blackberry announced a Letter of Intent led by Fairfax Financial, who already owned some of Blackberry. Below is an excerpt from the Blackberry press release.
The letter of intent contemplates a transaction in which BlackBerry shareholders would receive U.S. $9 in cash for each share of BlackBerry share they hold, in a transaction valued at approximately U.S. $4.7 billion. The consortium would acquire for cash all of the outstanding shares of BlackBerry not held by Fairfax. Fairfax, which owns approximately 10 percent of BlackBerry’s common shares, intends to contribute the shares of BlackBerry it currently holds into the transaction.
The BlackBerry Board of Directors, acting on the recommendation of a special committee of the board of directors (the “Special Committee”), approved the terms of the LOI under which the consortium, which is seeking financing from BofA Merrill Lynch and BMO Capital Markets, would acquire BlackBerry and take the company private subject to a number of conditions, including due diligence, negotiation and execution of a definitive agreement (the “Definitive Agreement”) and customary regulatory approvals.
Is this enough to save Blackberry? What’s the future going to be? What are your thoughts on it? Hit the link below for the full press release.