right here's Why BlackBerry stock Is Rising these days | The Motley fool

What took place

Shares of BlackBerry (NYSE:BB), a technology company focused on protection software and functions, became up 10% as of 10:fifty five a.m. EDT on Tuesday. The jump appears to be because of the information that an investing heavyweight can be interested in buying out the whole enterprise.

So what

StreetInsider.com mentioned that Fairfax monetary Holdings (OTC:FRFH.F), run by using famed investor Prem Watsa, has held talks with BlackBerry's administration about buying the business outright.

photograph source: Getty photos.

The file additionally stated that BlackBerry has created a committee and hired a crew of investment bankers to advise on a possible acquisition. The supply of the assistance, now not identified within the report, referred to that it became unclear if the talks are ongoing and the way far along they can also have advanced.

In different information, BlackBerry introduced nowadays that it has hired Thomas Eacobacci as president as of June 15. Eacobacci had in the past been an government at Citrix programs.

Now what

it's hard to know no matter if or no longer we should still take this rumor critically, however it is price noting that Watsa does have a protracted historical past with BlackBerry. He has been an investor in BlackBerry for many years, and has served on its board due to the fact January 2012.

What's extra, in Watsa's annual letter to shareholders, he made right here remark about his Blackberry investment:

We proceed to aid [CEO] John Chen as he works diligently to make BlackBerry a boom company once again. As I mentioned ultimate 12 months, with the Cylance acquisition, John is working to develop into the most depended on AI-cybersecurity business. nevertheless a work in growth!

As of the time of this writing, Blackberry hasn't launched any suggestions to verify or deny this report. So buyers may still stay concentrated on even if or no longer they are looking to own Blackberry's inventory in response to the enterprise's fundamentals and not because it may be an acquisition goal.