Blackberry Up For Sale At $4.7bn

Struggling smartphone maker BlackBerry said on Monday it has agreed in principal to be acquired by Fairfax Financial, a Canadian insurance company, for $9 per share, in a deal that would total $4.7 billion.

Shares of BlackBerry were halted prior to the announcement, and when trading resumed, the stock rose over 2 percent to $8.95. Prior to the announcement shares in the troubled smartphone maker company were down more than 5 percent for the day.

Last week, BlackBerry said it was laying off 40 percent of its workforce and expected to post a second-quarter loss of almost $1 billion.

Fairfax Financial, sometimes called the Berkshire Hathaway of Canada, is a holding company whose primary business is in insurance. It is led by Prem Watsa, a chemical engineer by training who has run the firm since the mid-1980s.

The press-shy Watsa has long been a supporter of BlackBerry, and his name has been linked with a potential buyout for months.

"We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world," Watsa said in a statement.

Shares in BlackBerry had plunged since Friday, when the company warned of a sharp drop in revenue and massive job cuts. The group has until Nov. 4 to conduct due diligence.

source: nbcnews