Failing at Smartphones, BlackBerry Is Going Private
The maker of the once iconic BlackBerry (NASDAQ:BBRY) smartphone announced in an August press release that it would explore “strategic alternatives to enhance value and increase scale in order to accelerate BlackBerry 10 deployment.”
The statement, released before the markets opened on August 12, explained that a special committee consider several options: joint ventures, partnerships, or even a sale of the company. Now, what has been rumored for months has finally transpired — BlackBerry is going private. The struggling smartphone maker announced Monday that it would be sold for $9 a share to a consortium led by Fairfax Financial Holdings, a deal that values the company at a total of approximately $4.7 billion. Fairfax is the company’s largest shareholder, with a 10 percent stake.
In the past five years, shares of BlackBerry’s stock have lost more than 91 percent of their value. Even though the stock has climbed about 15 percent over the past 12 months, it has dropped more than 26 percent this year through Friday’s close. After the news of the buyout deal reached investors, shares jumped as much as 1.20 percent to $8.83.