Monday 27 May, 2019

An Indian to buy BlackBerry

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Once the mobile tech giant – “BlackBerry” will be bought by Indian origin Prem Watsa, the founder and chief executive of “Fairfax Financial Holdings”, Canada. The company has reached on an agreement with BlackBerry for a deal worth over $ 4.7 Billion. Currently, “Fairfax” owns a share of more than ten percent in BlackBerry, and is incidentally happened to be the largest shareholder of the company. Prem Watsa was born in Hyderabad and was graduated in chemical engineering from IIT, Madras.

Earlier in this August, Watsa resigned from the board member position of BlackBerry as the company started searching for a new suitor. The deal will surely breeze a new lease of life to BlackBerry, which is currently going through an all time low situation. A report published by “International Data Corporation” points out that the share of BlackBerry in the smart phone market has shrunk to an all time low of 3.7 percent during the second quarter this year. Several trade analysts such as Jack Gold of J. Gold Associates praised the move of the company and said that this is possibly the best option available in front of BlackBerry. At the same time, soon after the auction decision came out, the market value of BlackBerry has raised to $9.08 from $8.23.

The deal is expected to be in effect by this November 4th and as per the proposed plan, the consortium led by Fairfax would offer $9 for each outstanding share at the same time Fairfax would also contribute its shares in this transaction. Prem Watsa when inquired about the deal said that they would provide immediate value to shareholders at the same time will also continue executing long – term strategies in a private company. He expressed optimism in opening a new private chapter of BlackBerry and its customers.

BlackBerry, who at once was a rage among the Smart Phone users, started losing their shine as Android and Apple started trending over the world. Currently Android commands a share of over 80% in the Smart Phone market. Also to add more vows to the current scenarios, Apple has recorded a huge turnout in its newly launched two iPhone versions. And this must be read with the news of BlackBerry decided to cut off approximately 4500 staffs or to say one third of their worldwide work force a couple of days ago. And at a state when the company is suffering from a nearly $1 billion loss in the second quarter, thanks to the poor sale of its new Z10 touch screen smart phone.

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