BlackBerry: Go-private agreement fails; $1 bln raise signals likely strategic shif
Cowen notes, shares of BBRY are trading lower today after plans for a Fairfax Financial Holdings-led consortium to acquire the co and take it private failed to materialize during the allotted due diligence period. Firm's price target is currently under review, given: 1) BBRY is likely to consume additional cash and assets during its current restructuring 2) co has had mixed success in driving adoption of its BlackBerry Enterprise Service 10 (BES 10) and its BlackBerry Messenger (BBM) service on alternative mobile platforms, 3) the relative value of its patent portfolio continues to decline, and 4) as a public company, BBRY stock is likely to continue to trade at a discount to a declining tangible book value despite the $1B raise until a go-forward operational plan and strategy is articulated by the new mgmt team (potentially including the break-up and/or sale of parts of co, given the significant number of reported suitors).