BlackBerry co-founders consider takeover bid

News Wireless Global 11 OCT 2013
BlackBerry co-founders consider takeover bid
BlackBerry co-founders Mike Lazaridis and Doug Fregin are considering a joint bid to acquire the smartphone maker. They disclosed an 8 percent stake in the company in a SEC filing and said they have hired bank advisers to consider a full takeover of the group. 

BlackBerry agreed last month to a takeover by its largest shareholder Fairfax Financial for USD 4.7 billion. Fairfax holds around 10 percent in the company. However, the Fairfax bid still depends on due diligence and a final agreement. 

Goldman Sachs and Centerview Partners are advising the BlackBerry co-founders on their potential bid. Lazaridis was earlier reported to be in talks with private equity groups about mounting a takeover offer. He served as co-CEO of BlackBerry until early 2012 and stepped down from the company's board in May 2013. 

Categories:

Mobile

Companies:

BlackBerry

Regions:

Global

Tags:

Handsets, Financial funding, M&A buyouts & divestments

Related Articles

GLOBAL 27 DEC 2013

Lazardis cuts BlackBerry stake to under 5%

BlackBerry co-founder Michael Lazaridis has reduced his combined stake with another co-founder in the smartphone maker to just under 5 percent, according to a SEC filing. Lazardis indicated he no longer plans to pursue a joint bid to acquire the company outright, the Wall Street Journal reports. In October, Lazaridis, and Douglas Fregin, another co-founder, disclosed they owned a combined 8 percent stake of BlackBerry and were considering a joint bid to acquire the company. In November, BlackBerry took itse

GLOBAL 25 NOV 2013

BlackBerry top management steps down

BlackBerry's COO, CFO and CMO are stepping down, following the recently announced departure of CEO Thorsten Heins and completion of the smartphone maker's strategic review. The company did not announce replacements for COO Kristian Tear or CMO Frank Boulben. John Chen, BlackBerry's new CEO, said he will work more directly with the engineering and sales and marketing teams, suggesting the top marketing and operating positions will be eliminated. James Yersh, previously senior VP, controller and head of compl

GLOBAL 14 NOV 2013

BlackBerry completes convertible debt issue

BlackBerry announced that it has completed the previously-announced USD 1 billion private placement of convertible debt to Fairfax Financial and other institutional investors. According to regulatory filings, Canso Investment Counsel bought the most debt, at USD 300 million, followed by USD 250 million from Fairfax. Funds managed by Mackenzie Financial invested USD 200 million, USD 100 million came from Qatar's sovereign wealth fund, USD 70 million from Virginia-based Markel and USD 10 million from Brookfie

GLOBAL 4 NOV 2013

BlackBerry abandons sale, CEO steps down

BlackBerry has abandoned plans to sell the company and instead agreed a new investment and management team led by its largest shareholder, Fairfax Financial. The handset maker will issue USD 1 billion in convertible debt to institutional investors, including USD 250 million to be acquired by Fairfax. The seven-year debt at 6 percent annual interest can be converted at USD 10 per share, a 28.7 percent premium to the current share price, and represent a 16 percent stake in the company. As part of the new plan

GLOBAL 4 NOV 2013

Qualcomm considers joint bid for BlackBerry - report

Qualcomm is in talks to join a possible bid for BlackBerry, people familiar with the matter told the Wall Street Journal. Qualcomm is contemplating joining private-equity firm Cerberus Capital Management, which is also in talks to join Mike Lazaridis and Doug Fregin, the BlackBerry co-founders who have said they are considering a bid. The deadline for bids is 04 November, after which an auction is expected to follow. Other potential bidders include Lenovo and Fairfax Financial, Blackberry's largest sharehol

GLOBAL 30 OCT 2013

BlackBerry approaches Facebook on acquisition - report

BlackBerry executives flew to California to meet with Facebook last week to gauge its interest in a potential bid for the smartphone-maker, people familiar with the matter told the Wall Street Journal. It was unclear what Facebook's response was. Spokesmen for both companies declined to comment. In addition to helping Facebook develop its own phone, the acquisition would give it access to a portfolio of wireless patents, some 70 million BlackBerry subscribers and about USD 2.6 billion in cash.

CANADA 21 OCT 2013

Canada streng op veiligheid inzake overname BlackBerry

De Canadese overheid bekijkt in hoeverre een overname van BlackBerry door een buitenlandse partij conflicteert met de nationale veiligheid. Dat heeft minister-president gezegd na afloop van een ontmoeting met voorzitter van de Europese Commissie (EC) José Barroso in Brussel. Harper is naar eigen zeggen extra streng omdat BlackBerry een belangrijke speler is op markt voor communicatie- en informatietechnologie. BlackBerry verkeert al tijden in moeilijk vaarwater nadat het niet in staat bleek te concurreren m

GLOBAL 18 OCT 2013

Lenovo considers bid for BlackBerry - report

Lenovo is actively considering a bid for all of BlackBerry, people familiar with the matter told the Wall Street Journal. Bids for BlackBerry are due by 04 November, according to the paper's sources. Last month, BlackBerry reached a preliminary USD 4.7 billion buyout deal with Fairfax Financial Holdings, one of its largest shareholders. Others that have been considering BlackBerry bids include Cerberus Capital Management, which has also signed a non-disclosure agreement to look at the company's books, and B

GLOBAL 15 OCT 2013

BlackBerry pledges customer support in open letter

BlackBerry has published an open letter to customers in major newspapers around the world to reassure them the company will continue supporting users of its smartphones. The letter outlines the measures the company is taking to improve its profitability and highlights the strengths of the BlackBerry platform, such as security, productivity and device management. The letter also confirms plans to launch BlackBerry messenger for Android and iOS devices, with around 6 million already pre-registered for the mes

GLOBAL 15 OCT 2013

BlackBerry verzekert klanten van voortbestaan

BlackBerry heeft via advertenties in vooraanstaande publicaties in negen landen opgeroepen vooral vertrouwen te blijven houden in de Canadese maker van mobiele apparaten. In de vorm van een open brief stelt BlackBerry onder meer dat het bedrijf zich bewust is van de uitdagingen, maar dat het nog voldoende geld in kas heeft en geen schulden heeft. BlackBerry staat op het punt te worden verkocht aan aandeelhouder Fairfax.

CANADA 11 OCT 2013

BlackBerry-oprichters willen onderneming terugkopen

BlackBerry's co-oprichters Mike Lazaridis en Doug Fregin hebben laten weten dat ze eventueel een bod willen uitbrengen op het noodlijdende Canadese concern. Nu de kans toeneemt dat investeerder Fairfax niet in staat is om de benodigde 4,7 miljard dollar voor een bod op BlackBerry bij elkaar te krijgen, zouden Lazaridis en Fregin het voormalige RIM willen kopen en van de beurs halen. Eerder deze week werd al bekend dat diverse partijen, waaronder Cisco en SAP, belangstelling hebben om delen van BlackBerry

GLOBAL 7 OCT 2013

Cisco, Google, SAP eye BlackBerry acquisition - report

BlackBerry is in talks with Cisco, Google and SAP about selling them all or parts of itself, Reuters reports, citing unnamed sources close to the matter. The deal would be an alternative to the preliminary agreement reached weeks ago with a group, led by BlackBerry's biggest shareholder, Fairfax Financial Holdings, to take the company private for about USD 4.7 billion. This bid has raised some skepticism due to financing questions.

GLOBAL 3 OCT 2013

BlackBerry attracts more interested suitors - report

Investor Cerberus Capital Management could be interested in BlackBerry, the Wall Street Journal reported, citing people familiar with the matter. Cerberus hopes to sign a confidentiality agreement that would give it access to BlackBerry's private financial information, one of the people said. The investor may well opt against pursuing a bid, the person added. At least one other investment company may also interested. BlackBerry, in a recent filing with the Securities and Exchange Commission, said it expects

GLOBAL 27 SEP 2013

BlackBerry disappointed by Q2 results as revenue falls 49%

BlackBerry has reported revenue of USD 1.6 billion for the second quarter ending 31 August, down 49 percent from USD 3.1 billion in Q1 and down 45 percent from USD 2.9 billion in the year-earlier quarter. The revenue breakdown for the quarter was around 49 percent for hardware, 46 percent for service and 5 percent for software and other revenue. In the second quarter, BlackBerry recognised hardware revenue on around 3.7 million smartphones. Most of the units recognised are BlackBerry 7 devices, part because

CANADA 23 SEP 2013

FairFax-led group signs LoI to acquire BlackBerry

BlackBerry has signed a letter of intent to sell the company to a consortium led by Canadian insurance firm FairFax Financial. Under the terms of the agreement, BlackBerry shareholders will receive USD 9 in cash for each share of BlackBerry they hold, valuing the deal at USD 4.7 billion. FairFax already owns around 10 percent of BlackBerry's common shares and will contribute them into the transaction. During the due diligence and regulatory approval period, lasting until 04 November, BlackBerry will be able

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.