Things are getting even worse for BlackBerry, with concerns that the buyout offer from Fairfax Financial may fall through and talks with other potential buyers turning stale. If BlackBerry is unable to find a buyer, it may be headed towards a breakup, where various company holdings are sold separately to the highest bidder.
Bloomberg reports that BlackBerry is becoming more open to the idea of a breakup as the prospect of a $4.7 billion buyout grows less likely due to its share value dropping below Fairfax’s offer amount. BlackBerry had continued to court potential buyers after receiving the offer from Fairfax Financial, hoping to create a bidding war, but only received interest in parts of the company. It’s possible that auctioning off holdings such as patents or its enterprise network could net more money than an acquisition.
This news comes amid even more shutdowns by BlackBerry. The company announced a withdrawal from the consumer market last month and has just announced the closing of the “Center of Excellence” in Halifax, to which the company had committed CAD$4 million ($3.8 million US) per year. The closing puts an additional 350 employees out of work, in addition to the 4,500 jobs lost when the company transitioned from consumer to enterprise.