Tomahawk, WI 11/05/2013 (BasicsMedia) – The sale of BlackBerry Ltd (NASDAQ:BBRY)  which was once Canada tech darling a few years ago might not go forth as Fairfax continues to stumble in offering a deal for the financially hard hit company. Fairfax was supposed to offer BlackBerry a deal thought to be worth $4.7 billion on Monday to see the closure of the deal. The deal would have been of much help to the shareholders who continue to grapple with decreasing stock price accompanied with declining asset values. Fairfax Financial Holdings which is one of the company’s largest shareholders with A10% stake is instead planning to invest $250 million into the hard hit phone company.

 BlackBerry currently needs up to $1 billion in capital to see its structuring plans which are aimed at getting it into its feet. Fairfax Financial holdings intend to use the $250 million in investments as a bargaining chip in its effort of trying to have a good amount of influence in the company’s board. Fairfax holdings want its Chief Executive Officer Prem Watsa to be the lead director of the board. Fairfax has continued to reinforce its efforts and commitment of trying to see Blackberry reclaims its lost glory in terms of revenue and net profits in the coming years. Its CEO explained why they decided to invest instead of privatizing the company. Fair fax Holdings prefers to raise money for the company by issuing debts which will later be converted into shares.

Fairfax financial requirement for the deal to go through is the clearing of the whole board which has driven the company into the debts that it is currently entangled in. Fairfax does not see the current board as the board that is to reignite Blackberry’s fortunes thus the need for full overhaul. Blackberry ones commanded 20%of the phone manufacturing industry which has continuously declined over the past years to a low of 3% at the moment. BlackBerry ones commanded a market cap of approximately $83 billion which has reduced to a few billions of dollars. The company is currently not in a position to attract new investors other than Fairfax holdings thus the reason why it will have to dance along if it is to get its fortunes right.

BlackBerry LTD (NASDAQ:BBRY) currently commands quite attractive patent portfolio that any investors willing to gamble on can invest in. BlackBerry patent portfolio can fetch between $1.6 and $3 billion at the moment according to estimates, the estimates also puts the company’s enterprise business that manages email servers and other government customers at a whopping $1.1 billion. BlackBerry at the end of the Third quarter commanded cash balances totaling $2.6 billion. The bleeding in Blackberry has been ongoing for 5 years making its loose market capitalization totaling $75 billion. The company plans a round of layoffs that will see the company trim its staff by 3000 employees. This is part of the company cost cutting plans in an effort of reducing its wage bill. The company expects to cut its work force by 40% as restructuring plans continue.

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