A few days after BlackBerry announced its second quarter financial numbers, which weren’t good as the smartphone maker posted a near $1 billion loss and 4,500 job cuts, it confirmed that it has entered into a letter of intent with a consortium led by Fairfax Financial Holdings Limited.
The terms of the letter of intent state that the potential $4.7 billion transaction would give shareholders $9 per share, permit the consortium to have six weeks of due diligence and let BlackBerry look elsewhere in the meantime.
After two years of decline, analysts and the company agreed that going private was the only available option at this point, especially since the company failed to install a brand new operating system to facilitate BlackBerry devices to surf the Internet.
“The Special Committee is seeking the best available outcome for the Company’s constituents, including for shareholders,” said Barbara Stymiest, Chair of BlackBerry’s Board of Directors, in a statement. “Importantly, the go-shop process provides an opportunity to determine if there are alternatives superior to the present proposal from the Fairfax consortium.”
Upon the news, BlackBerry shares were up to $9.08.