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Troubled BlackBerry Purchased by Fairfax Financial, Valued at $4.7B

6/12/2014

By Sara Morrison
TheWrap

Following a series of setbacks, BlackBerry will be acquired by Fairfax Financial for an estimated $4.7 billion, the company announced on Monday.

The company's fortunes have declined over the years since Apple introduced its iPhone in 2007, culminating in Friday's layoffs of 4,500 employees (about 40 percent of its workforce) and dismal second quarter earnings for fiscal year 2014. The company reported that it was running an operating loss of almost $1 billion.

"We believe this transaction will open an exciting new private chapter for BlackBerry, its customers, carriers and employees," said Prem Watsa, chairman and CEO of Fairfax. "We can deliver immediate value to shareholders, while we continue the execution of a long-term strategy in a private company with a focus on delivering superior and secure enterprise solutions to BlackBerry customers around the world."

More to come …

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