This is an entirely corrupt deal. Prem Watsa (CEO of Fairfax and 10% holder and a Board member until recently) publicly said 3 months ago that Blackberry is worth in the $40’s and he was a board member then and for a couple of months after that. He signed on to the strategy laid out by Blackberry. Now suddenly, Blackberry changes accounting method, delays BBM roll-out and Watsa makes an offer for less than 25% of what he said it was worth recently?
Everyone has dipped into the cash pile. Lazaridis and Balsillie stole $7 million each after ruining the company, Heins screwed up and will make tens of millions of dollars. Now Watsa is stealing a quarter and nickel form every shareholder’s share and getting paid $160 million if another bidder comes along. Remember he signed a letter of intent, he has no financing in place and even if he did, why would Blackberry agree to pay him $160 million for such a low ball offer? What if he can’t raise money? Will he pay Blackberry anything? No.
This is one of the most incompetent, corrupt, immoral (possibly illegal) set of events around Blackberry.
Why Blackberry is not doing an asset sale and spin off BBM and Enterprise business as two separate companies. Those two will be worth $10 billion, more than twice what Watsa is offering? Because all that gravy will be made by these “private equity guys” and Fairfax/Watsa and some crumbs thrown at the Board and Management team to go along in this highly illegal, morally corrupt scam. Yes, the whole thing is a scam.
Blackberry can easily get at least $25-35 a share if it pursues a smart break-up strategy. But Watsa will pick up for $9 a share and make billions.
So what’s new?
Have you ever seen a company pre announce on a friday at 3 30 7 days before an E R?
then the next buisness day go private? Unreal, If watsa steals this for 9 bucks then chops it up for 18 its a disgrace.
The whole thing was a set-up. This is the most corrupt transaction. And then they delayed BBM roll-out. The whole thing was planned in back-rooms and by completely corrupt people.
thats why any competitor just sitting there is going to be answering for it in the future on why they did not step in. whats all their cash sitting there doing nothing when here they can make instant money the software business is what IBM and Microsoft are in need of to grow in the future or all their cash just sitting there is a loss to them
Let's get this straight, Thor is going to sell the company to someone else so that someone else can run the company better. This is #$%$. They should just change the management starting with him and his **douchebag** side kick Alicia.
Prem watsa is a brilliant investor he needs to get 17 to be close to even . This is just the first salvo as he tries to get even . There are lots of companies that will now come forward because they don't want to be bridesmaids, if no one shows up at 9 prem will make bundles but will Ned to work at it
There are lots of companies that will now come forward because they don't want to be bridesmaids, if no one shows up at 9 prem will make bundles but will Ned to work at it
No way. BBRY is 4 years behind the times. They are dinosaur. They bring nothing to the party. They are worth their cash and that is is.
This is the start of finding out what the real value of Blackberry is. If Blackberry is worth 25 dollars a share, their is no way fairfax will get it for 9, as we still live in somewhat of a free market and other companies will be all over it. If their are no other bids, I will be the first to admit I was totally wrong about this companies real value.
Sentiment: Strong Buy