Hey folks. Its just a catchy title, nothing to worry about 🙂
Its November 4th, and in case you didn’t know, BlackBerry may or may not be sold to Fairfax Financial today.
Let’s shed more light on the word ‘Sold’. About 6 weeks ago BlackBerry and a consortium of investors led by Fairfax Financial came into an agreement where the latter offered to acquire the former subject to due dilligence, and here’s what was in the agreement :
1) Blackberry shareholders would receive $9 per share in cash.
2) The transaction is valued at approximately $4.7 billion.
3) Fairfax Consortium was permitted (by Blackberry) to conduct due diligence.
4) Blackberry was entitled to still go-shop for buyers during the due dillgence period, subject to payment of a termination fee in the event alternative offer accepted.
So today ends the 6 weeks period of the due diligence and if Faitfax has the $4.7 billion they might just take Blackberry private. But also, there’s been news and rumors that ‘Fairfax might not be able to raise the funds’ for this bid, so what if they don’t come up with the money what happens? Well, according to Crackberry.com there are a couple of other possibilities and we made a summary :
- They (Fairfax) may ammend the terms of the deal, that is, if nobody else is interested in bidding for Blackberry @ $9 per share.
- Another bidder might come up with an offer,which we don’t know yet, but if this happens Fairfax may have to convince investors that their offer is superior or NOT! But you should know that this is possible since we have Cerebrus Capital Management (a private equity firm), the co-founder of RIM Mike Lazaridis and any other technology comapny who may be interested, like Facebook, all on the list of possible bidders.
- Things might just get delayed to a further date since there’s no rule that says they must conclude due dilligence by the 4th of November.
- Nothing might happen. Things have been looking pretty good for Blackberry since the launch of the cross-platform BBM. Recently we got news that BlackBerry regained some lost marketshare in Australia while android was hit with a loss.
Well, let’s keep our fingers crossed and see how things go. To get live updates and up-to-the minute gist and news you can follow us on twitter @fathomberry or you could holla for our Blackberry PIN.
- BlackBerry bidders expected to emerge as Fairfax wraps due diligence (ctvnews.ca)
- Last-Chance Weekend to Get Your Bid in for BlackBerry (247wallst.com)
- Cerberus and Mike Lazaridis Considering Joint Bid for BlackBerry (berryreview.com)
- BlackBerry bidder Fairfax ‘struggling to raise funds’ (telegraph.co.uk)
- Fairfax Said to Be Short of Financing for BlackBerry Bid – Businessweek (newestgadgetsinfo.com)