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Blackberry finalizes $1 Billion deal with Fairfax Financial Holdings

Not a week goes by that we don’t hear something about the struggling company known as BlackBerry, and the news has generally not been good. From botched launch of BBM for Android and iOS to bungled buyouts… it’s been a rough year for BlackBerry. It looks like the company may have finally gotten a little relief as today the company announced it had completed its $1 Billion dollar deal with Fairfax Financial Holdings.

For the past several months BlackBerry was searching high and low to find a buyer or investor for company. Big names were tossed about like Google and Microsoft, but nothing came to fruition. Last week stock shares plummeted when the company accounted it would raise $1 Billion through a convertible debt issue while changing things up in their ranks. BlackBerry chief executive Thorsten Heins was out after only 22 months, and John Chen was in as the new interim CEO for the company.

The $1 Billion dollar deal includes Fairfax Financial Holdings and several other investors including Manulife Asset Management, Mackenzie Financial Corp, Quatar Holding LLC, and Cansco Investment Counsel.  Fairfax and the other investors have the option to buy an additional $250 million worth of debentures within the next 30 days.

In an open letter on BlackBerry’s blog today Chen said, ” I believe in the value of this brand. With the right team and right strategy in place, I am confident that we will rebuild BlackBerry for the benefit of all of our constituencies.” Fairfax deal aside, John Chen and his team certainly have their work cut out for them if they want to restore BlackBerry back to its former glory.

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