Things are getting desperate for BlackBerry as the company consider breaking itself up to be sold for parts if Fairfax Financial Holdings — its largest shareholder — is not able to raise the US$4.7 billion required to take the troubled company private reported Bloomberg citing an inside source.
BlackBerry has until November 4 to seek other options while the Fairfax group raise the necessary funds. Prospects don’t look good as a source close to the matter say the group may not be able to deliver the goods the Bloomberg report continues.
SAP, Cisco and even rival Samsung, were approached by BlackBerry advisers for a buyout bid but the companies have indicated that they’re only interested in acquiring parts of the once formidable Canadian tech giant. A breakup would enable interested parties to do just that — bid for BlackBerry’s most valuable pieces, such as its patents or enterprise network .
“If you break up the company, you’re going to get more than the company is worth right now,” Sachin Shah, a strategist in special situations and merger arbitrage at New York-based Albert Fried & Co. told Bloomberg. Whether Fairfax’s bid is successful or not, “breaking it up sounds more appetizing for all involved,” he said.
Closer to home, BlackBerry Malaysia Managing Director has left his position a little over two years after assuming the role, his departure is presumably linked to the recent company development.
The final chapters of BlackBerry, a company that once took the mobile industry and commanded an 80% market share in the United States is shaping up to be very sad indeed.
