Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
Mobile Tech
24/7/365 Network Uptime
Average Rating:
Rate this article:  
Will BlackBerry Break Up? Or Will Founders Buy It? Or...
Will BlackBerry Break Up? Or Will Founders Buy It? Or...

By Barry Levine
October 10, 2013 1:54PM

    Bookmark and Share
Mike Lazaridis, BlackBerry co-founder and vice chairman, has bought more shares this year in the company he created, and, according to a securities filing, is considering the possibility of buying the entire company. Lazaridis now owns about 8 percent, and has contracted with brokerage firms to review his position, in conjunction with co-founder Douglas Fregin.
 



The idea of breaking itself apart and selling the pieces is becoming more appealing to BlackBerry, according to news reports. At the same time, the company's co-founders may be considering making their own bid to take the company private.

In a story published Thursday by Bloomberg News Service, the Waterloo, Ontario-based company is said to be more open to the idea of a breakup, because of the growing possibility that Fairfax Financial Holdings, which recently made a $4.7 billion offer pending a due diligence period in which it will analyze the financials and look for partners, will be unable to raise the needed funding. Bloomberg cites an unspecified "person with knowledge of the matter."

Two of the largest pension funds in Canada, Alberta Investment Management Corp. and Canada Pension Plan Investment Board, have said they would consider joining in a bid, as has another private equity firm, Cerberus Capital Management. Fairfax is reportedly looking for financing from Bank of America and BMO Capital Markets. Silver Lake Partners, which recently took Dell private, has also been mentioned as having been in talks with BlackBerry about enterprise computing.

Cisco, SAP, Intel

BlackBerry has reportedly approached other major companies about a buyout, including Cisco, SAP, Samsung, Intel, LG and Google, but Bloomberg said the indications are those possible suitors are primarily interested in parts of the company. The most valuable properties appear to be BlackBerry's global server network, mobile device management software, the patent portfolio and the enterprise division.

In particular, SAP, Cisco and Samsung have said they're only interested in one or more parts. SAP, for instance, is reportedly looking at the enterprise division. Intel is apparently primarily interested in the patents. The patent portfolio has been estimated by at least one analyst to be worth about $1.6 billion, and the enterprise network in the range of $550 million to $1.1 billion. BlackBerry is also sitting on about $2.6 billion in cash.

The letter of intent from Fairfax gives BlackBerry until Nov. 4 to consider other proposals than Fairfax's $9 per share offer. But, if BlackBerry were to accept another offer and discontinue negotiations with Fairfax, it would have to pay an additional fee of about $150 million to Fairfax.

Bid by Co-Founders?

Meanwhile, BlackBerry co-founder Mike Lazaridis has bought more shares this year in the company he created, and, according to a securities filing on Thursday, is considering the possibility of buying the entire company.

Lazaridis now owns about 8 percent, up from nearly 5.7 percent at the end of last year, and has contracted with Goldman Sachs and Centerview Partners to review his position, in conjunction with co-founder Douglas Fregin. In 1985, the two men started Research In Motion, until recently the company's name.

In January, BlackBerry launched its delayed but much-awaited BlackBerry 10 platform, as well as several devices using the new OS. But stock prices have fallen nearly 20 percent this year, and its market value is about $4.8 billion, compared with $84 billion at its highest point in 2008.
 

Tell Us What You Think
Comment:

Name:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Tech
1.   Samsung: $2.2B Too Much for Apple
2.   Review: Windows Phone Advances
3.   Microsoft-Nokia Deal Closes this Week
4.   Samsung Data Center Catches Fire
5.   Project Ara Phone Version Ahead


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Samsung: $2.2B Too Much for Apple
Says $38.4M more like it for patents.
Average Rating:
Review: Windows Phone Advances
Updated OS features will please users.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Verizon Data Breach Report Exposes Top Threats
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 
White House Updating Online Privacy Policy
A new Obama administration privacy policy explains how the government will gather the user data of online visitors to WhiteHouse.gov, mobile apps and social media sites, saying much is in the public domain.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.