Following the news that Fairfax Financial Holdings may not be able to gather the $4.7 billion necessary for its planned BlackBerry takeover, Bloomberg is now reporting that the Canadian smartphone-maker may be forced to breakup. Its individual parts could then be sold to a number of prospective buyers, including Cisco and Samsung, both of which have indicated they are unwilling to buy the entire company.
A breakup would almost certainly mean the end of BlackBerry as we know it, but according to analysts the company’s parts may be worth more than its whole. Certain slices of the once-dominant smartphone maker, specifically its patents and enterprise network—valued at around $3 billion and $1 billion respectively—could be sold at a higher price once cut free from less profitable parts of the company that would otherwise drag the value down.
With the Nov. 4 deadline on a possible Fairfax deal rapidly approaching, BlackBerry has failed to start the bidding war it hoped for, and with its stock price continuing to drop investors are growing worried that the one offer the company did receive will fall apart. Fairfax hoped to take the company private, buying a majority stake at $9 per share, but it looks like the end may be in sight for BlackBerry, though there’s always a slim chance that an unexpected last minute buyout offer could keep the company intact.