Farifax to buy Blackberry for $4.7 billion (+video)
Fairfax, Blackberry's largest shareholder, has agreed to buy the ailing company for $4.7 billion. Blackberry shares plunged on the news of the Fairfax sale.
Toronto — BlackBerry has agreed to sell itself for $4.7 billion to a group led by largest shareholder, Fairfax.
BlackBerry said Monday that a letter of intent has been signed and its shareholders will receive $9 in cash for each share.
Fairfax head Prem Watsa is a former board member who owns 10 percent of BlackBerry. Watsa stepped down when BlackBerryannounced it was considering a sale last month. The billionaire is one of Canada's best-known value investors. .
Trading of the company's stock was halted ahead of the news. BlackBerry shares plunged after the company announced Friday a loss of nearly $1 billion and layoffs of 4,500 workers.
The BlackBerry, pioneered in 1999, was once the dominant smartphone for on-the-go business people and other consumers before Apple's iPhone debuted in 2007.