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Fairfax to buy BlackBerry for $4.7 billion

TORONTO — BlackBerry has agreed to a $4.7 billion sale to a group led by its largest shareholder, Fairfax Financial Holdings Ltd., after new smartphones failed to turn the company around.

BlackBerry Ltd. said Monday that a letter of intent has been signed and that its shareholders will receive $9 in cash for each share. The deal comes just days after the Canadian company announced plans to lay off 40 percent of its global workforce.

The BlackBerry, pioneered in 1999, was once the dominant smartphone for on-the-go business people and other consumers. It could be so addictive that it was nicknamed "the CrackBerry." President Barack Obama couldn't bear to part with his BlackBerry. Oprah Winfrey declared it one of her "favorite things."

But then came a new generation of competing smartphones, starting with Apple's iPhone in 2007. The BlackBerry, that game-changing breakthrough in personal connectedness, looked ancient suddenly.

Although BlackBerry was once Canada's most valuable company with a market value of $83 billion in June 2008, the stock has plummeted from more than $140 a share to less than $9, giving it a market value of $4.6 billion, just short of Fairfax's offer.


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