Sept. 23 - Summary: BlackBerry agrees to a $4.7b takeover by Fairfax Financial; Microsoft unveils new Surface; Apple stock jumps on strong new iPhone sales. Bobbi Rebell reports.
Just when things looked like they were hitting bottom- BlackBerry has a deal. Fairfax Financial- its biggest shareholder- will pay $4.7 billion dollars for the smartphone maker, taking it private. That works out to $9 a share for the Canadian company. Just last week BlackBerry warned it will report a quarterly loss of nearly a billion dollars. Sales will also be much worse than forecasts. BlackBerry is also laying off 4,500 workers- more than a third of its workforce. According to analyst Jack Gold "It could provide them with cover to re-architect the company even more than they are now. Can BlackBerry ultimately survive? That's not as clear. " Shares, which had plunged on Friday, rose on news of the deal. Microsoft unveiled faster and more powerful versions of its Surface tablets - trying to turn around lackluster sales and try to better compete with rival Apple Apple stock jumped after the company sold 9 million of its new iPhone 5s and 5C - far more than expected in their first weekend on the market. It was the most successful iPhone launch ever. U.S. stock markets did not have as strong a day- the major indices all to the downside. In Europe: A similar picture- Angela Merkel's landslide victory in Germany balanced out with continued concerns about the U.S. economy.