BlackBerry Sells itself to Fairfax Financial Holding for $4.7 billion

blackberry-logo

If you thought that the $7.7 billion which Microsoft paid to buy Nokia, a company with such prestige, culture and legacy a small amount of money, listen to this: BlackBerry has been bought by a Canadian company Fairfax Financial Holding for $4.7 billion. (Still, the Canadian company did end up in Canadian hands.)

Fairfax Financial had already held around 10% of BlackBerry’s shares previously. Stockholders will be receiving $9 per share as a part of this deal which will take the company private.

The deal – which is final – is still pending some regulatory requirements as the parties involved will be subjected to six weeks of due diligence, until the 4th of November.

The news might have been a bit of a surprise to hear sometime ago but not now as only yesterday we reported that Blackberry was eyeing a $1 billion loss this quarter and was cutting its workforce by 40 percent.

It’s incredibly ironical as only about half a decade ago, BlackBerry was worth a staggering $100 billion. After the iPhone, its sales actually increased a bit but dived headfirst towards the ground later, a reaction to which is the news you’re reading right now.

Prem Watsa, the Chairman and CEO of Fairfax Financial had something to say however: “We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees,” he said.

“We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world.”