BlackBerry Saved by Fairfax Financial for $4.7 Billion

BlackBerry saved by fairfax for 4.7 billion dollars

According to CNN Money, BlackBerry has recently announced that Fairfax Financial, an insurance corporation that has a 10% stake in the cell phone manufacturer’s stock, will acquire the company for a handsome $4.7 billion.

The company had planned to fire 4,500 members of staff, in light of a number of commercial failures and disappointing sales figures.

BlackBerry also announced of its intention to record an inventory writedown of up to $960 million.

The corporation’s chief executive officer, Thorstein Heins, had anticipated that the new range of Z10 touchscreen cell phones would strike an accord with reviewers and buyers alike. Alas, share prices continued to tumble and BlackBerry were forced to announce a quarterly loss of $1 billion – three times higher than expected.

The deal is not set in stone, and will be subject to due diligence. As a result, if Fairfax so desire, the company can pull out of negotiations at any time.

Fairfax Chairman and Chief Executive Officer Prem Watson, according to CNN Money, had this to say:

“We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees. We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world.”

As Fairfax is treading unfamiliar territory, it remains to be seen how the company will fare.

By: James Fenner

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