Founders of BlackBerry Ltd (NASDAQ:BBRY) Struggling to Keep the Company Going

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BlackBerry Ltd (NASDAQ:BBRY)
BlackBerry Ltd (NASDAQ:BBRY)

BlackBerry Ltd (NASDAQ:BBRY)’s founders Mike Lazaridis and Douglas Fregin are on a mission to save their fast dwindling company. Both Lazaridis and Fregin are thinking about a bid to acquire the 92% of the company that is not owned by them. The duo currently owns 8% of the company. Goldman and partners from Center View were hired by the founders as advisers.

BlackBerry has not been in a great position because of the huge loss worth $1 billion suffered by the company because their handset could not find enough buyers in the mobile market. The new handsets were launched as an effort to restore BlackBerry’s former glory, which was lost due to the company’s inability to change and compete with the fast growing smartphone market that is now ruled by mobile manufacturers like Samsung and Apple.

The founders are not the only ones interesting in getting hold of this 90% share of the company; they will find themselves up against Fairfax Financial Holdings that is BlackBerry’s biggest stakeholder and has also put forward a bid worth $4.7 billion the for 90% share which the founders want.

According to sources, investors are not too sure about Fairfax’s ability to back their proposal with funds or finding investors or getting loans worth billions of dollars; same concerns are being voiced regarding Fregin and Lazaridis offer as well.

A non-disclosure agreement with BlackBerry is being followed by a private company by the name of Cerberus Capital Management that specializes in investing in falling companies is following; according to the agreement, Cerberus will be allowed to access BlackBerry’s confidential data. As evident from different media reports, BlackBerry is also looking for other tech companies to purchase some share of BlackBerry’s assets or business; however, there is no information about whether any tech company has come forward with its bid or not.

The rumor has it that Lazaridis’ bid involves him taking charge of BlackBerry’s smartphone business and other interested companies will be given the charge of BlackBerry’s services and software business. However, most of the analysts believe that the smarthpone business of BlackBerry is almost not worth anything.

In the last session, shares of BlackBerry Ltd (NASDAQ:BBRY) dipped by -1.59% ($8.07).

 

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