BlackBerry considers breakup if Fairfax fails to find funding
BlackBerry is reportedly warming up to the idea of breaking the company apart and selling off the pieces. The news comes from an unnamed inside source speaking with Bloomberg, and it is seemingly a direct result of concerns that Fairfax Financial may not be able to secure funding for the buyout it agreed to in late September. BlackBerry and Fairfax announced last month that the latter would purchase BlackBerry and all of its assets for $9 a share, or about $4.7 billion. Fairfax had not yet secured financing for the deal, however, and now other companies such as Google, Samsung and Intel have shown interest in acquiring pieces of BlackBerry’s business. ”If you break up the company, you’re going to get more than the company is worth right now,” Albert Fried & Co. analyst Sachin Shah told Bloomberg. “Breaking it up sounds more appetizing for all involved.” If the Fairfax deal doesn’t go through, BlackBerry will be owed a $0.30 per share breakup fee.
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This article was originally published on BGR.com
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