In mid August of this year, the Canadian-based BlackBerry finally said they were putting themselves up for sale. Then a little over a month later Canadian Financier Prem Watsa put together the syndicate Fairfax, Bank of America, BMO Capital Markets and Merrill Lynch on September 23, 2013 to purchase the beleaguered company and take it private. Now, according to a report published by Reuters on Thursday that syndicate is having trouble raising the 4.7 billion dollars they needed to purchase BlackBerry.
The reason given for the syndicate's trouble is that financial institutes and other potential investors to lend them the funds needed for the purchase. They state a lack of faith that BlackBerry can turn around the downward spiral they have been on for the last two years. Even if outside sources do not come through with the funds needed the syndicate could still reach into their own deep pockets and come up with the money.
"The Fairfax deal could still be best way forward for BlackBerry," said Jack Gold, an analyst at J. Gold Associates. "Fairfax could run them for a while and significantly increase the value of the overall company rather than the fire sale going on right now."
The news is not all bleak though for the beleaguered Canadian-based smartphone company since they do have other possible suitors. Those other suitor included technology giants Google, Cisco and SAP software that joined in the bidding war on October 4, 2013. Another possible buyer is the China-based Lenovo that was a later comer to the bidding war when they joined in on October 22, 2013. Before acknowledging they were interested in the Canadian company they squashed rumors earlier in the year that they were interested in BlackBerry.