The Globe and Mail reports Fairfax injecting funds instead of buying BlackBerry
Instead of proceeding with a buyout deal, Fairfax and a group of unnamed investors – which sources say includes a Middle Eastern sovereign wealth fund – agreed to pump $1-billion into the smartphone maker, giving it more money to work with as it tries to arrest a downward spiral in sales and market share.
A second group, led by BlackBerry co-founder Mike Lazaridis and private equity firm Cerberus Capital Management, came forward with a highly conditional takeover offer during a dramatic weekend of negotiations that also resulted in the departure of Thorsten Heins, who has been BlackBerry’s chief executive officer since early 2012.
This is probably a smarter move than to buy the company and watch it fail.
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