Sep. 23 - Smartphone maker BlackBerry has agreed to a $4.7 billion takeover by its largest shareholder, Fairfax Financial. Bobbi Rebell reports.
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Just when things looked like they were hitting bottom- BlackBerry has a deal. Fairfax Financial- its biggest shareholder- will pay $4.7 billion dollars for the smartphone maker, taking it private. That works out to $9 a share for the Canadian company.
Just last week BlackBerry warned it will report a quarterly loss of nearly a billion dollars. Sales will also be much worse than forecasts.
BlackBerry is also laying off 4,500 workers- more than a third of its workforce.
According to analyst Jack Gold "It could provide them with cover to re-architect the company even more than they are now. Can BlackBerry ultimately survive? That's not as clear. "
Shares, which had plunged on Friday, rose on news of the deal.