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Continued: BlackBerry signs letter of intent to sell to largest shareholder, Fairfax, for $4.7 billion

  • Article by: ROB GILLIES , Associated Press
  • Last update: September 23, 2013 - 6:45 PM

BGC analyst Colin Gillis called it a "trial balloon."

"It's worth the paper it's written on," Gillis said. "It forces the hand for anyone else that might be interested."

Gillis said taking BlackBerry private is the right move and that it's possible that BlackBerry could survive in a much smaller form. He noted that the $9-per-share offer is lower than the $12.32 average price that the stock traded over the past six months.

Going private removes the burden of pleasing shareholders with short-term results, just as Michael Dell hopes to do with Dell Inc. after winning a bid to take the troubled computer maker private, said Anthony Michael Sabino, a professor at St. John's University's business school. He said Fairfax is known for patience in its investments, which would give BlackBerry time to regroup.

"In all honesty, its fate is still uncertain, but at least now it has a fighting chance," Sabino said.

This year's launch of BlackBerry 10 and fancier devices that use it was supposed to rejuvenate the brand and lure customers. But the much-delayed phones have failed to turn the company around. At their peak in the fall of 2009, BlackBerry's smartphones enjoyed global market share of more than 20 percent, Walkley said. That is now just 1.5 percent.

The decline of BlackBerry, formerly known as Research In Motion Ltd., is evoking memories of Nortel, another Canadian tech giant, which ended up declaring bankruptcy in 2009.

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