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BlackBerry CEO and President Thorsten Heins unveils the BlackBerry 10 mobile platform in New York on January 30, 2013/AFP

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BlackBerry posts $965 mn loss, vows ‘transition’

Fairfax, a Canadian firm headed by billionaire Prem Watsa, is already BlackBerry’s largest shareholder with approximately 10 percent of its shares.

Watsa resigned from BlackBerry’s board in August when it announced a search for a suitor.

Under the proposed BlackBerry Fairfax deal the consortium would offer $9 for each outstanding share, and Fairfax would contribute its own shares in the transaction.

A firm deal, once due diligence is completed, is expected by November 4. It also hinges on the consortium obtaining financing.

BlackBerry still has some 70 million subscribers worldwide, but most of these are using older handsets, with the newer devices on the BlackBerry 10 platform failing to gain traction.

According to research firm IDC, BlackBerry’s global market share was just 2.9 percent in the second quarter, the lowest since the firm began tracking.

Because BlackBerry has some $2.6 billion cash on hand, the Fairfax offer is worth around $2 billion for the value of the enterprise, analysts point out.

While BlackBerry’s newest smartphones have not sold well, analysts say its software and services are strong, especially for device management for companies with a need for strong security.

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