BlackBerry Ltd (BBRY) Reportedly Would Breakup If Fairfax Cannot Raise Enough Cash

Posted Oct 10, 2013

BlackBerry Ltd (NASDAQ:BBRY) may have to sell off their business in different portions to complete a buyout deal, according to sources with Bloomberg.  The reason why this came up is because Fairfax Financial Holdings is reportedly having a hard time finding the necessary partners or money to support the $4.7 billion buyout.


If BlackBerry did break-up, it would allow companies to bid on the mobile manufacturing company’s most valuable assets like their enterprise business and patents.  Companies like Cisco, SAP, and Samsung already reportedly express interest in buying out certain parts of the BlackBerry business.

BlackBerry Ltd (NASDAQ:BBRY) solicited rival bids after agreeing to be bought out by Fairfax.  Fairfax is one of BlackBerry’s largest shareholders.  BlackBerry has until November 4th to consider other proposals while Fairfax conducts due diligence and lines up financing.  Many investors are concerned that the deal could fall apart too.  According to analyst estimates, BlackBerry’s patents alone could be worth as much as $3 billion.

Fairfax chief executive officer Prem Watsa stepped down from BlackBerry’s board of directors in August to put together the offer.  Watsa did not name any of the other investors that would be involved in this deal.  Fairfax is reportedly seeking funding from Bank of America and BMO Capital Markets though.