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BlackBerry agrees to $4.7 billion buyout with Toronto-based holding company

post #1 of 36
Thread Starter 
Struggling Canadian smartphone manufacturer BlackBerry announced on Monday that it has agreed to a $4.7 billion deal that will see it acquired by a group led by Fairfax Financial.



The announcement came early on Monday afternoon, with shares of the company halting trading shortly thereafter. Monday's halt marks the second time in just days that BlackBerry trades have been stopped pending big news. On Friday, BlackBerry shares were halted as the company announced 4,500 new layoffs and an expected net operating loss of more than $950 million for its second quarter.

The deal as described in BlackBerry's Letter of Intent would see Fairfax Financial Holdings paying $9 per share to each BlackBerry shareholder. Fairfax already holds about 10 percent of BlackBerry.

BlackBerry expects that diligence on the deal will be complete by November 4, 2013. During that period, the firm is required to actively solicit, receive, evaluate, and negotiate with potential other suitors in case a better offer arises.

Once virtually synonymous with the idea of mobile productivity, BlackBerry was slow to react to the emergence of competition from Apple's iPhone and other devices running Google's Android operating system. The years since its peak have seen BlackBerry (n?e Research in Motion) plummeting both in terms of market share and revenue.

BlackBerry announced in August that it was officially putting itself up for sale.

Its most recent operating system update, BlackBerry OS 10, was meant to reverse this trend. The firm released two new high-end models to accompany BBOS 10, one with BlackBerry's signature physical keyboard and the other a touchscreen-only affair. Both are viewed largely as failures, and BlackBerry's share of mobile device sales has fallen below even that of Nokia, which was itself recently bought by Microsoft.
post #2 of 36
Too little too late, oh how the mighty have fallen.

It's a shame, BB10 OS is actually quite nice. Had it come out 2-3 years sooner they really might have stood a chance.
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post #3 of 36
The only experience I have ever had with Blackberry are the ones that grow wild in my yard and the kind I put on my toast. Ironic since it seems this Blackberry is also toast.

 

Never argue with an idiot. They will only bring you down to their level and beat you with experience. 

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Never argue with an idiot. They will only bring you down to their level and beat you with experience. 

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post #4 of 36

Seems that amateur hour really is over. Just not in the way RIM/Blackberry originally expected.

post #5 of 36
Quote:
Originally Posted by saarek View Post

Too little too late, oh how the mighty have fallen.

LOL! From earlier today. . .
http://forums.appleinsider.com/t/159018/blackberry-officially-puts-itself-up-for-sale-but-potential-buyers-are-limited/80#post_2403695
melior diabolus quem scies
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melior diabolus quem scies
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post #6 of 36

Whenever I've read an article on BB, I always think back when Stevo introduced the orig. iPhone the BB executive staff and engineers did not believe the iPhone could do what Stevo said it would.

 

Complacency.

post #7 of 36
Quote:
Originally Posted by MikeJones View Post
 

Seems that amateur hour really is over. Just not in the way RIM/Blackberry originally expected.

Amateur's? They pioneered the smartphone industry.

Maybe if their CEO had been more focused on the company and not buying the Phoenix Coyotes...

 

Shows how important a visionary as leader is to a company. Someone who can lead through innovation.

post #8 of 36
Quote:
Originally Posted by Happy Mac View Post
 

Amateur's? They pioneered the smartphone industry.

Maybe if their CEO had been more focused on the company and not buying the Phoenix Coyotes...

 

Shows how important a visionary as leader is to a company. Someone who can lead through innovation.

 

The pioneered the business smartphone industry, bring your own device as a growing trend ran them over.

post #9 of 36
Quote:
Originally Posted by christopher126 View Post
 

Whenever I've read an article on BB, I always think back when Stevo introduced the orig. iPhone the BB executive staff and engineers did not believe the iPhone could do what Stevo said it would.

 

Complacency.

 

Blackberry did not have the ability to compete with Apple. Once Apple set their sights on the smartphone market, Blackberry was dead.

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post #10 of 36
Quote:
Originally Posted by Happy Mac View Post
 

Amateur's? They pioneered the smartphone industry.

Maybe if their CEO had been more focused on the company and not buying the Phoenix Coyotes...

 

Shows how important a visionary as leader is to a company. Someone who can lead through innovation.

 

You're welcome. I never said they were amateurs. I was lampooning their ridiculously arrogant marketing material for their tablet that was almost as big a flop as the HP Touchpad.

post #11 of 36
Quote:
Originally Posted by jd_in_sb View Post
 

 

Blackberry did not have the ability to compete with Apple. Once Apple set their sights on the smartphone market, Blackberry was dead.

 

Yep.

post #12 of 36

Apple's third roadkill.

 

But none will be as satisfying as when/if Samsung joins the club. At least, Palm, Nokia, and Blackberry had something original.


Edited by anantksundaram - 9/23/13 at 1:41pm
post #13 of 36
Quote:
Originally Posted by anantksundaram View Post
 

Apple's third roadkill.

 

But none will be as satisfying as when/if Samsung joins the club.

 

I don't see that happening anytime soon. The only way Apple will hurt Samsung is if they make a larger iPhone around 5". Once you are used to a larger display smartphone is is extremely difficult if not almost unfathomable to consider using a 4" screen again. But once Apple make a larger display Samsung would then have no where to hide and I predict their sales would drastically decrease. 

 

Never argue with an idiot. They will only bring you down to their level and beat you with experience. 

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Never argue with an idiot. They will only bring you down to their level and beat you with experience. 

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post #14 of 36
FairFax is making an offer, but it still needs bank loans for the transaction to go forward. They're discussing financing the purchase with JP Morgan and BMO Financial, from the reports I've seen.

What does BBRY have that would be worth purchasing for $9/share? I suppose FairFax has a plan, otherwise they wouldn't have made the offer? Maybe they're planning some kind of pyramid scheme to quickly recoup their investment by selling it off as part of CDOs?

Is BBRY worth the parts? Are the patents worth much? Cash?

FairFax doesn't produce anything, they don't run companies; they make their money on financial transactions. BBRY as a phone company is dead, and these guys are simply going to try to make a couple of percent on their investments by playing tax and market games. That's all the suits know.
post #15 of 36
Originally Posted by gwmac View Post

Once you are used to a larger display smartphone is is extremely difficult if not almost unfathomable to consider using a 4" screen again.

 

In fact, once you own a 9.7” screen, it’s difficult, if not almost unfathomable, to suggest that phones need to be idiotically large. :lol:

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Originally Posted by asdasd

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post #16 of 36

Bought by an insurance company.

 

Jeezus . . . 

post #17 of 36
What are they going to do with it?
post #18 of 36
Quote:
Originally Posted by anantksundaram View Post
 

Apple's third roadkill.

 

But none will be as satisfying as when/if Samsung joins the club. At least, Palm, Nokia, and Blackberry had something original.

 

Seriously so you only want one smartphone supplier then?

post #19 of 36
Quote:
Originally Posted by MikeJones View Post
 

 

You're welcome. I never said they were amateurs. I was lampooning their ridiculously arrogant marketing material for their tablet that was almost as big a flop as the HP Touchpad.

I stand corrected.

post #20 of 36
Quote:
Originally Posted by 1983 View Post

What are they going to do with it?

Sell off the assets and IP for a lot more money.

post #21 of 36
Quote:
Originally Posted by Onit car bonnet View Post
 

 

Seriously so you only want one smartphone supplier then?

 

Doesn't bother me if such a situation happens purely based on the merits of the products. Not all companies deserve to exist just to exist.

 

Now if they are driven out of business by underhanded, monopolist tactics: of course not.

post #22 of 36

Blackberry "cleaning up in the consumer market". Wasn't true even in 2009年.

AppleMark

post #23 of 36
Quote:
Originally Posted by jfc1138 View Post
 

 

The pioneered the business smartphone industry, bring your own device as a growing trend ran them over.

 

What did you pioneer that qualifies you to mock Blackberry?

post #24 of 36
Quote:
Originally Posted by jd_in_sb View Post
 

 

Blackberry did not have the ability to compete with Apple. Once Apple set their sights on the smartphone market, Blackberry was dead.

 

Easy to say but impossible to prove. What's to say that Blackberry couldn't be where Android or Samsung is today? 

post #25 of 36
Quote:
Originally Posted by christopher126 View Post
 

Whenever I've read an article on BB, I always think back when Stevo introduced the orig. iPhone the BB executive staff and engineers did not believe the iPhone could do what Stevo said it would.

 

Complacency.

 

Complacency indeed. But the story about BB being in denial about the capabilities of iPhone has been overhyped. BB in fact reacted quite quickly. Too quickly with the Storm. Then they took too long before recognizing the need for a revamped OS. If they had recognized the importance of software earlier ... If they had bought QNX earlier ... 

post #26 of 36

BB blew it.  Underestimated Apple.  They could have been making Android phones and copying Apple like Samsung, but instead insisted that it's OS was the best for Enterprise and that people wanted keyboards.  They could have hedged their bets and made both, but instead just sat there and kept doing what they were doing.  In the end, they were passed up.  By the time they saw it, it was too late.

post #27 of 36
Quote:
Originally Posted by waldobushman View Post

FairFax is making an offer, but it still needs bank loans for the transaction to go forward. They're discussing financing the purchase with JP Morgan and BMO Financial, from the reports I've seen.

What does BBRY have that would be worth purchasing for $9/share? I suppose FairFax has a plan, otherwise they wouldn't have made the offer? Maybe they're planning some kind of pyramid scheme to quickly recoup their investment by selling it off as part of CDOs?

Is BBRY worth the parts? Are the patents worth much? Cash?

FairFax doesn't produce anything, they don't run companies; they make their money on financial transactions. BBRY as a phone company is dead, and these guys are simply going to try to make a couple of percent on their investments by playing tax and market games. That's all the suits know.
They have 2 billion in cash. Other than that I'm not sure how you value their patents.
post #28 of 36
Quote:
Originally Posted by Onit car bonnet View Post
 

Seriously so you only want one smartphone supplier then?

If it's Apple, yes. Unambiguously.

post #29 of 36
Quote:
Originally Posted by StruckPaper View Post
 

 

Easy to say but impossible to prove. What's to say that Blackberry couldn't be where Android or Samsung is today? 

 

Good point. Perhaps I was harsh.

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post #30 of 36
Quote:
Originally Posted by StruckPaper View Post

What did you pioneer that qualifies you to mock Blackberry?
Don't see any mock. The bring your own device then for businesses diminishing of their enterprise centric model DID hurt them. That's an observation.
post #31 of 36

I for one hope Microsoft or someone else becomes a successful alternative to Android.  I don't like the idea of only a single major platform in the market.  I much prefer 3 platforms actively competing against one another.  It's good for Apple to have to compete.

 

On the criticism front I haven't used a Surface RT or PRO; but for those of you that don't like it, it would be interesting to hear why you don't like it rather than  simply Microsoft sucks.  Personally I'll be sticking with Apple for the foreseeable future... they keep on producing products that I want to use.

post #32 of 36

From top to absolute bottom within 6 years, you don't get to see that everyday, especially on such a large corporate scale. Blackberry shareholders must be cursing Apple, hahaha. It is sad though to see more than 4000 job lay offs.

"We're surrounded by anonymous, poorly made objects. It's tempting to think it's because the people who use them don't care -- just like the people who make them." - Jony Ive, 2014
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"We're surrounded by anonymous, poorly made objects. It's tempting to think it's because the people who use them don't care -- just like the people who make them." - Jony Ive, 2014
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post #33 of 36
What are they going to do with the remains, theres no coming back from this type of failure I don't think.
post #34 of 36
Quote:
Originally Posted by murman View Post

What are they going to do with the remains, theres no coming back from this type of failure I don't think.

 

I wouldn't be surprised if Fairfax Financial looks into "monetizing" Blackberry's IP portfolio.

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Do you realize that fluoridation is the most monstrously conceived and dangerous Communist plot we have ever had to face? - Jack D. Ripper
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post #35 of 36

Anyone want to bet that the holding company only wants the patents so they can become a patent troll?

post #36 of 36
Quote:
Originally Posted by murman View Post

What are they going to do with the remains, theres no coming back from this type of failure I don't think.

 

Perhaps a purely enterprise service for those corporations who demand total obedience to the IT department?

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