Insider Monkey is reporting that Fairfax Financial Holdings has bought 50 million shares in BlackBerry. That brings Fairfax’s total shares in BlackBerry to 96.72 million, or 18.5% of BlackBerry’s outstanding shares.
Clearly Prem Watsa and Fairfax see a bright future for BlackBerry. Could this be an indication that something big is on the way for BlackBerry ? At least one user on StockTwits was wondering if Fairfax is planning on taking BlackBerry private.
Personally, I’m not sure if that will happen. On one hand, if Fairfax is convinced BlackBerry will grow a lot from here onward, then by taking BlackBerry private, Fairfax gets to keep all that future value of BlackBerry to themselves.
And it would certainly be good for BlackBerry, since they get to do what they need to do without being in the spotlight and pressure from the stock-market investors. You can bet it’s what Chen wanted since he first took the helm.
But on the other hand, Chen has said $15/share wouldn’t be a big enough offer to buy BlackBerry. $15/share works out to $7.85B. Is Fairfax willing to spend that much money ? We’ll find out soon enough.