Who Bought BlackBerry Company in a Major Acquisition

Let's talk about who bought BlackBerry company. The major acquisition happened in 2010, when Research In Motion (RIM), the company behind BlackBerry, was acquired by Fairfax Financial Holdings.

Fairfax Financial Holdings, a Canadian holding company, led the acquisition with a bid of $4.7 billion. This marked a significant shift in the company's ownership.

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BlackBerry was acquired by Fairfax Financial Holdings, a private equity firm, in a deal that will take the company private.

The acquisition was announced after weeks of speculation, with BlackBerry signing a deal with Fairfax that will see the company go private within the next six weeks.

Analysts have mixed opinions on the deal, with some like Kagan optimistic about BlackBerry's prospects in private ownership.

Kagan believes that taking BlackBerry private will give the company the chance to reinvent itself and serve its smaller universe of customers without the distraction of Wall Street.

However, another analyst, Jan Dawson, is not as sympathetic, and thinks that taking BlackBerry private doesn't solve the company's fundamental problems.

BlackBerry's device sales are cratering, and its decision to stop pursuing the consumer market is a death knell for its device business, according to Dawson.

BlackBerry's supply chain relies on scale for profitability, and it will never again be able to achieve the scale necessary to make money on devices.

Dawson estimates that BlackBerry will be out of the device business entirely by the middle of next year.

The company's mobile device management business is based on its ability to manage BlackBerry devices, but its cross-platform management is less well established than those of major competitors.

If you strip out BlackBerry's use of its QNX operating system for BlackBerry devices, the company's business is worth less than $100 million.

BlackBerry's patent portfolio is one of the few parts of the company that looks worth a significant amount, but it wouldn't justify the purchase price on its own.

The deal to buy BlackBerry is a significant one, worth $4.7 billion.

Under the terms of the deal, Fairfax Financial Holdings, led by Prem Watsa, will contribute the shares it currently holds into the transaction.

The sale is still subject to approval by regulators and BlackBerry's shareholders, and the consortium has six weeks to conduct due diligence.

During this time, BlackBerry can seek better offers, and the company hopes to have a definitive transaction agreement in place by November 4.

If the deal goes through, BlackBerry will become a private company, allowing it to make more long-term decisions rather than focus on quarterly results.

This is a key advantage of going private, according to tech analyst Troy Crandall.

Here are some key details about the deal:

Prem Watsa, the head of Fairfax Financial Holdings, must have a strategy to help save the company, according to Troy Crandall.

Watsa had previously resigned from BlackBerry's board due to a potential conflict of interest, but it was seen as a sign that Fairfax was considering buying BlackBerry.

BlackBerry was founded in 1984 by Mike Lazaridis and Douglas Fregin.

The first BlackBerry device was released in 1999 and quickly gained popularity for its secure email and internet browsing capabilities.

The company went public in 1998 with an initial public offering (IPO) that raised $150 million.

BlackBerry's popularity peaked in the mid to late 2000s with the release of the BlackBerry Curve and BlackBerry Bold devices.

In 2013, BlackBerry's market value had dropped to around $3 billion from its peak of $83 billion in 2008.

The company has undergone significant changes and restructuring efforts since then, including the appointment of new CEOs and the sale of various assets.

In 2020, BlackBerry Limited announced plans to shift its focus from hardware to software and services, discontinuing the production of its last smartphone device.

Prem Watsa, the owner of Fairfax Financial Holdings, played a significant role in the acquisition of BlackBerry.

The consortium led by Fairfax Financial Holdings signed a letter of intent to acquire BlackBerry for $9 per share.

Prem Watsa resigned from BlackBerry's board on August 12, 2013, just before the acquisition announcement.

Mark Wiseman, CEO of Canada Pension Plan Investment Board, expressed interest in investing in BlackBerry if it became private.

BlackBerry laid off 4,500 staff and took a CAD$1 billion operating loss in September 2013, just before the acquisition announcement.

The company began selling unlocked Q10 and Z10 smartphones directly from its website in the United States on September 29, 2013.

BlackBerry published an open letter in 30 publications in nine countries on October 15, 2013, to reassure customers that it would continue to operate.

This was seen as a last-ditch attempt by BlackBerry to survive in a market it had essentially invented.

BlackBerry made several key acquisitions to expand its software and services offerings, including WatchDox, a file security firm, and AtHoc, a crisis communications leader.

These acquisitions allowed BlackBerry to integrate new products into its portfolio, such as the Good Secure EMM Suites, which consolidated WatchDox and Good Technology's products.

In addition to acquisitions, BlackBerry also formed hardware licensing partnerships, starting with BB Merah Putih in Indonesia and later with TCL Corporation.

TCL released the BlackBerry KeyOne, and BB Merah Putih released the BlackBerry Aurora under these partnerships, marking a shift in BlackBerry's focus from in-house hardware development to software and partnerships.

BlackBerry expanded its software and services offerings through several strategic acquisitions.

One notable acquisition was WatchDox, a file security firm, which brought new security solutions to BlackBerry's portfolio.

BlackBerry also acquired AtHoc, a crisis communications leader, to enhance its crisis management capabilities.

The company further consolidated its position in the EMM market by acquiring rival Good Technology.

The products from WatchDox and Good Technology were re-branded and integrated into BlackBerry's existing software offerings.

BlackBerry announced the release of the Good Secure EMM Suites, which combined the capabilities of WatchDox and Good Technology with its own software.

BlackBerry announced its shift towards software development and away from in-house hardware production in September 2016.

The company's last in-house developed phone, the DTeK60, was released in October 2016.

BlackBerry partnered with BB Merah Putih, a joint venture in Indonesia, to develop its devices.

The company then partnered with TCL to produce BlackBerry-branded smartphones for sale outside of specific countries.

TCL released the BlackBerry KeyOne, one of the first devices under this partnership.

BlackBerry also partnered with Optiemus Infracom to produce devices throughout India and neighboring markets.

The company's decision to focus on software development was a significant change from its past focus on hardware production.

In 2012, RIM acquired Paratek Microwave, bringing its adaptive RF Tuning technology into BlackBerry handsets.

BlackBerry's partnership with TCL allowed for the release of the BlackBerry Aurora.

Certicom was founded in 1985 by Gordon Agnew, Ron Mullin, and Scott Vanstone. They were pioneers in cryptography.

Certicom's intellectual property portfolio is vast, with over 350 patents and patents pending worldwide. These patents cover key aspects of elliptic-curve cryptography (ECC).

The National Security Agency (NSA) has licensed 26 of Certicom's ECC patents. This was a significant move to implement elliptic curves for protecting government information.

Certicom was acquired by Research In Motion (RIM) in 2009, after a bidding war with VeriSign. RIM's offer was deemed superior, leading to the acquisition.

Certicom became a wholly owned subsidiary of RIM following the acquisition. It was subsequently de-listed from the Toronto Stock Exchange on March 25, 2009.

So, let's talk about the assets that made BlackBerry such an attractive purchase for its new owners.

The company had a treasure trove of intellectual property, including over 40,000 patents, which was a major selling point for the acquisition.

BlackBerry's patent portfolio was a key asset in the sale, with many of its patents still being used in the development of new technologies.

The company's brand recognition was also a significant asset, with the BlackBerry name still synonymous with secure mobile devices.

BlackBerry's software division, which included its popular QNX operating system, was another valuable asset that was part of the sale.

The QNX operating system was used in a wide range of industries, including automotive and medical devices, making it a highly sought-after asset.

The sale of BlackBerry's assets marked a new chapter in the company's history, as it transitioned from a hardware manufacturer to a software-focused company.

The new ownership structure allowed BlackBerry to focus on its software business, which was expected to drive growth and innovation in the years to come.

The sale of BlackBerry to Fairfax Financial Holdings is a complex deal worth $4.7 billion.

The due diligence period is expected to be completed by November 4, during which time BlackBerry can seek better offers.

The consortium, led by Fairfax, is offering a "go shop" during this due diligence period, similar to Dell's earlier go-private deal.

BlackBerry's board of directors has approved the provisional agreement on the recommendation of a special committee formed in August.

The sale is still subject to approval by regulators and BlackBerry's shareholders.

The consortium is reportedly seeking financing from Bank of America Merrill Lynch and BMO Capital Markets.