1. abwan11's Avatar
    BlackBerry Ltd., once valued at $83 billion, may be stuck with the cheapest valuation ever for a North American technology or telecommunications takeover.
    The smartphone maker said yesterday it reached a tentative agreement for a $4.7 billion buyout by a group led by Fairfax Financial Holdings Ltd., its biggest shareholder. Including net cash, the proposal values the Waterloo, Ontario-based company at an 80 percent discount to its book value and just 0.17 times its sales, the cheapest revenue multiple on record among similar-sized North American telecommunications or technology acquisitions, according to data compiled by Bloomberg.

    Microsoft Corp., the world?s largest software company, agreed this month to buy Nokia Oyj?s handset business for $7.2 billion. Microsoft paid 0.42 times Nokia?s trailing 12-month revenue from devices and services, according to data compiled by Bloomberg that include net debt.

    The transaction would value BlackBerry at an 83 percent discount to the $11.3 billion of revenue it generated in the past 12 months, according to data compiled by Bloomberg. That?s a lower sales multiple than any other technology or telecommunications takeover struck in North America for more than $1 billion, the data show.
    Those deals had a median book value multiple of 5.3, while the BlackBerry buyout would be for just 0.2, the data show.
    Other Bidders?

    Posted via CB10
    09-24-13 06:11 AM
  2. SnapzGEG's Avatar
    BlackBerry Ltd., once valued at $83 billion, may be stuck with the cheapest valuation ever for a North American technology or telecommunications takeover.
    Posted via CB10
    Once is the operative word.
    With their current hemmoraging state of affairs, inability to show stability with delays etc. I can see why valuation of the bid is as such.
    Hey, if I had the $$ made by Apple last weekend with the 9M units sold I would anti up (just kidding).

    The reality is is regardless of the value anyone of us puts on the company, economics state that you can only get what someone is willing to pay you. But I am sure if some Hedge Fund team or Venture Capital willing to gamble on the risk we may indeed see someone step up. But I won't count on it for a Canadian company.
    Hell if we look at the Spectrum auction, where none of the US players wanted to step in for a chance to bid you see what is what.

    Our laws set to protect our Canadian companies from foreign raiders (takeover) inhibit companies like #BBRY from being worth the hassle when it comes to outside interest, the headaches and regulatory nightmare, they can certainly do without.

    'We' allowed the failure of one of the biggest tech giants in this country (Nortel), do you think anyone really cares that much about what happens to Blackberry other than us die-hards?

    I watched the news as the Mayor of Waterloo last weekend pretty much wrote off #BBRY by suggesting that they (the City) can live without, that they have so much other great companies that they can survive #BBRY failure.

    It is what it is. The company is being offered a white-knight and a good one at that, while share holders may scoff at the valuation the fact is they are getting more than pennies on the dollar which would be the way it would be in Spring of 2014.
    09-24-13 06:43 AM
  3. birdman_38's Avatar
    Thank you for the data @abwan
    09-24-13 06:54 AM
  4. zzbsb's Avatar
    It's the cheapest because Mr. Watsa and Blackberry made sure it is. They gave out bad news one after another to drive the price down. Just think about it, ever since Mr. Watsa resigned from the board, how many bad news have we got?
    09-24-13 10:15 AM
  5. anon1727506's Avatar
    Microsoft Corp., the world?s largest software company, agreed this month to buy Nokia Oyj?s handset business for $7.2 billion. Microsoft paid 0.42 times Nokia?s trailing 12-month revenue from devices and services, according to data compiled by Bloomberg that include net debt.

    The transaction would value BlackBerry at an 83 percent discount to the $11.3 billion of revenue it generated in the past 12 months, according to data compiled by Bloomberg. That?s a lower sales multiple than any other technology or telecommunications takeover struck in North America for more than $1 billion, the data show.
    Those deals had a median book value multiple of 5.3, while the BlackBerry buyout would be for just 0.2, the data show.
    Other Bidders?

    Posted via CB10
    Looking at even the recent past of BlackBerry's financial history is very misleading. They have been making a profit, even as their share of the market continued to shrink. It's the future and project revenues that are important, and these rely on BlackBerry having a product and a market to sell that product. BB10 was that product and the market was suppose to be everyone.

    There is no doubt that PW is paying less for BB that it is worth... that is the only reason he is making the offer. And the fact that future revenues are in question is the reason the BOD is looking seriously at that offer.
    09-24-13 10:54 AM
  6. greggebhardt's Avatar
    It is risk that is driving the value, if not there would be 10 bids by now.

    We have silence. The $9 bid may not fly either.
    09-24-13 11:53 AM
  7. abwan11's Avatar
    If the sum of parts is 13/14 and the book value is 18/19, this offer isn't even close. The deal doesn't allow shareholders to partake in any future growth, which makes it completely ridiculous.
    They need an American partner, in tech that can stem the decline, instill confidence, and drive growth. There's a lot there to do it, more than they want to admit to, and that deserves a higher price

    Posted via CB10
    09-24-13 12:44 PM
  8. abwan11's Avatar
    10 billion sounds about right.

    Posted via CB10
    09-25-13 06:11 AM
  9. world traveler and former ceo's Avatar
    this offer was a joke .. and a massive rip off to shareholders ... and should be voted down.,
    09-25-13 09:33 AM
  10. BBPandy's Avatar
    I watched the news as the Mayor of Waterloo last weekend pretty much wrote off #BBRY by suggesting that they (the City) can live without, that they have so much other great companies that they can survive.
    That must have been a slap in the face for Mike L. Mike & BlackBerry have given so much to Waterloo. And I'm not just talking about employment & economic growth. You walk around that city & everywhere you turn you see something that has been donated or sponsored by BlackBerry / Mike.


    Posted via CB10
    09-26-13 03:34 AM

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