A breakup is still on the table for BlackBerry.
According to the inside track from sources close to the embattled Canadian smartphone maker, if the deal with Fairfax Financial to go private doesn’t work out, the company may break up.
BlackBerry Ltd. is more open to a breakup of the company amid concerns that Fairfax Financial Holdings Ltd. may be unable to line up funding or partners for a $4.7 billion buyout, a person with knowledge of the matter said.
Various companies – including SAP AG, Cisco Systems Inc. and Samsung Electronics Co. – recently approached by BlackBerry advisers are said to be only interested in parts of the company.
“A breakup would let parties bid for BlackBerry’s most valuable pieces, such as its patents or enterprise network,” sources tell Bloomberg.
“If you break up the company, you’re going to get more than the company is worth right now,” said Sachin Shah, a strategist in special situations and merger arbitrage. “Breaking it up sounds more appetizing for all involved.”