BlackBerry sold to biggest shareholder for $4.7bn

BlackBerry has agreed a deal that will see it sold to a consortium led by its largest shareholder for $4.7 billion. Picture: Robert Perry

TROUBLED smartphone maker BlackBerry has agreed a deal that will see it sold to a consortium led by its largest shareholder for $4.7 billion (£2.85bn).

The Canadian firm said it had signed a “letter of intent agreement” with Fairfax Financial – which owns almost 10 per cent of BlackBerry shares – over a $9 per share cash deal.

It comes days after BlackBerry, which was one of the pioneers of the smartphone industry but has since been overhauled by its rivals, particularly Apple’s iPhone, revealed it expected to make a loss of $1bn after disastrous sales of its new handsets, and would lay off 4,500 staff.

Canadian billionaire investor Prem Watsa, Fairfax’s chairman and chief executive, said: “We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees.

“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.”

Shares of in the Nasdaq-listed company, which plunged after Friday’s announcement it was shedding 4,500 jobs, rose 1.3 per cent to $8.85 after initial rumours of the bid, although trading in BlackBerry was suspended ahead of the announcement.

Watsa has been compared to Warren Buffett because of his investing approach.