BlackBerry Met With Facebook Last Week on Potential Bid
BlackBerry Ltd. executives flew to California to meet with Facebook Inc. last week to gauge its interest in a potential bid for the struggling smartphone-maker, according to people familiar with the matter. It remains unclear whether Facebook is interested in placing a bid. Spokesmen for both companies declined to comment. Last month BlackBerry struck a preliminary deal to go private with Canadian insurer Fairfax Financial Holdings Ltd. for $4.7 billion, or $9 a share. The due diligence period for that deal ends next week, but BlackBerry and its advisers remain open to interest from other potential bidders. The deadline for other bids is Monday. BlackBerry does have other players circling. Earlier this month The Wall Street Journal reported that Chinese computer giant Lenovo Group Ltd. was interested in a possible bid. And BlackBerry has signed a nondisclosure agreement with distressed asset specialists Cerberus Captial Management LP, people familiar with the matter have said. BlackBerry's co-founders, Mike Lazaridis and Doug Fregin are also weighing a bid, according to a Securities and Exchange Commission filing earlier this month. After years of seeing its share of the smartphone market erode, BlackBerry in August announced a wide-ranging strategic review that essentially put the company up for sale. The company wrote down nearly $1 billion in unsold smartphone inventory, and is in the process of cutting 40% of its staff.