Tomahawk, WI 9/24/2013 (BasicsMedia) – It is a well known fact that BlackBerry Ltd (NASDAQ:BBRY) has been facing a very trying time financially. Very few investors are giving it much chance of surviving this time round. In the mind of many analysts, all that is left is for BBRY to be sold off, and be placed under a new management. All sorts of possibilities have been bandied around in the hope that they will lead to the rescue of BBRY, which has become synonymous with the world of Smartphones. One such suggestion recommends for a buy-out akin to Dell’s. Is this possible and effective?

 BBRY Tries Different Options to get Itself Out of Trouble

 BBRY has been trying a number of different options all meant to make it survive through this financial challenge that threatens its very existence. One suggestion that has been floated around is for the company to go back to serving corporations and governments like it originally used to. It seems the fierce competition BBRY faces in trying to come up with products designed for individual consumers has not produced the sort of results it had hoped for. There are cheaper options in the market which produce products similar to BBRY’s, and they are very popular.

 Secondly, onie of BBRY’s biggest shareholders, Fairfax Financial Holdings Ltd, which owns 10% of BBRY’s shares, has entered into an agreement with this technological giant. The goal here seems to be to make BBRY a private company once again, and take it away from the trying public eyes, as well as Wall Street regulations. This is a strategy which is close to what Michael Dell did with DELL, the company he helped found, and which he recently bought back to make it private. Fairfax is to pay $9 per share to acquire the remaining stock in BBRY it doesn’t own.

 BBRY Has better Chance of Success as a Private Company

 There is a real chance that as a private company, BBRY’s fortunes may be much better than what they have been ever since it went public. The company will be freed from the shackles which had held it back from trying out new ideas and strategies owing to the responsibilities they owed shareholders and Wall Street alike. It hasn’t enjoyed the best of times, what with the news BBRY issued to the effect that it had been unable to sell close to $1 billion worth of phones. BBRY also recently stated that it was prepared to dispose of 40% of its workforce as a cost cutting measure.

 However, Fairfax’s deal with BBRY doesn’t take effect immediately. There is a period of 6 weeks during which due diligence has to be observed, before the deal can be concluded. It is worth noting as well that BBRY can still continue with a search for a buyer they think will give them more than the $4.7 billion Fairfax is offering. The other reason for the delay is that Fairfax would still need to source or prepare the finances to make this deal a reality. BBRY is in a weak position and doesn’t have much going for it which it can use in bargaining with Fairfax.

 Will this deal between BBRY and Fairfax produce results? We can only wait and see.

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