Blackberry, today said that it had signed a letter of intent to sell itself to Fairfax Financial Holdings Ltd. for $4.7 Billion, i.e. more than $1.50 lower than stock's closing price on thursday.Blackberry announced that Fairfax, its largest shareholder with about 10% of the stock, had offered $9 a share in cash to buy the company.But Blackberry said it would continue to look for other options while negotiations with Fairfax continued.
On Friday, Blackberry announced 4,500 jobs cuts.
Blackberry said it is expected to make a loss of up to $1billion after poor sales of its new handsets. In August, they said it was evaluating a possible sale.
Blackberry shares have fallen to $8.25 after the announcement was made.
Canadian billionaire Prem Watsa, Fairfax's chairman and chief executive, said: "We believe this transaction will open an exciting new private chapter for Blackberry, its customers, carriers and employees.
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