BlackBerry announced Monday afternoon that it has issued a letter of intent to sell itself to a consortium led by Fairfax Financial Holdings.
The deal values BlackBerry at $4.7 billion and would give shareholders $9 per share. Fairfax, a company based in Canada, already owns about 10 percent of BlackBerry shares. This deal would give it all remaining shares. The consortium has six weeks to consider the deal -- time which BlackBerry could spend pursuing other suitors.
The beleaguered device maker announced Friday that it would post a loss of nearly $1 billion for the second quarter, and that it would lay off 40 percent of its workforce. (See: BlackBerry to Cut 4,500 Jobs.)
Trading of BlackBerry shares was halted at around 1:20 p.m. ET Monday in anticipation of the deal announcement. At that time, the shares were down 5.6 percent for the day to $8.23. That's on top of a 17 percent slide that followed Friday's announcement.
This is the buyout that the company formerly known as BlackBerry has been seeking to save it from bankruptcy as it has struggled to make a comeback in the mobile space. It's less clear if the deal would save any mobile play it has left. Fairfax hasn't said what it would do with the company's remaining assets, including BlackBerry Messenger, enterprise services, and IP.
— Sarah Reedy, Senior Editor, Light Reading