As I go through the news daily, the Blackberry situation has made me realise that I am sooo lucky not to be one of these “big” guys that need to make the final decision that affects so many people in so many ways.
The current situation of BlackBerry is as follows. They reported a quarterly loss of nearly one billion dollars in September and was recently forced to remove 4,500 jobs, equivalent to 40% of its global workforce. The company had been counting on its delayed BlackBerry 10 operating system and its Z10 and Q10 handsets to rejuvenate sales. However, the sales performance of both models were not encouraging.
So there are 3 possible scenarios based on what The verge and Red Orbit has reported so far.
Scenario #1; Sell to Fairfax Financial which holds almost 10% of the Blackberry’s shares. They had signed a letter of intent “contemplating” buying out the company for a reported $4.7 billion ($9 per share). This buyout grows less likely due to its share value dropping below Fairfax’s offer amount.
Scenario #2; Mike Lazaridis and Douglas Fregin, who currently own 8% of the company they originally founded in 1984, have filed paperwork with the US Securities and Exchange Commission (SEC) expressing interest in acquiring the remaining 92 percent of the company.
Scenario #3; BlackBerry had continued to court potential buyers after receiving the offer from Fairfax Financial, hoping to create a bidding war. If BlackBerry is unable to find a buyer, it may be headed towards a breakup, where various company holdings are sold separately to the highest bidder.
Now I guess we will have to wait and see…