BlackBerry breakup likely as hopes of Fairfax deal fade

BlackBerry breakup likely as hopes of Fairfax deal fadeThere hasn't been much upside to BlackBerry news lately, and sadly the trend doesn't look like changing.

The latest reports suggest that with hopes of a buyout from the Fairfax group receding and little chance of an outright deal with other parties, the outcome could be BlackBerry being broken up and “sold for parts”.

News of a potential $4.7bn deal with existing BlackBerry shareholder group Fairfax Financial first emerged via a signed letter of intent at the end of last month.

However, Bloomberg reports that with the BlackBerry share value having dropped below Fairfax's offer amount investors are less keen on the deal now.

Fairfax has until November 4 to conduct due diligence and line up financing, and in the meantime BlackBerry is free to talk to other potential bidders.

As we reported at the start of the week, talks have been held with tech firms Cisco, SAP and Samsung, but it seems there's no real interest in an outright sale.

The very real possibility now is that BlackBerry will be broken up and the parts auctioned off individually. “If you break up the company, you’re going to get more than the company is worth right now,” said New York-based analyst Sachin Shah. “Breaking it up sounds more appetizing for all involved.”

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JanSt / MOD  Oct. 11, 2013 at 20:39

I tried the Z30 for 5 minutes earlier today. What can I say? It is huge. HUGE.

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