NEW YORK (TheStreet) -- On Monday it was announced that Fairfax Financial submitted a letter of intent to take BlackBerry (BBRY) private at $9 per share. ZTWealth's Chief Economist and Strategist Max Wolff tells TheStreet's Brittany Umar why there's still room for optimism.
At $9 per share, the offer is essentially paying $2 billion above cash levels, Wolff said. Meaning that without including cash, the offer suggests the rest of BlackBerry -- the intellectual property, licensing agreements, brand name and IP -- is only worth a little over $2 billion.
Wolff disagreed with that notion, but admitted that the company has been in a lot of trouble with its products, which was highlighted by the recent $1 billion write-off of inventory.
He added that he expects at least one more bid to come in before the six-week deadline expires on November 4th.While the market seems to be discounting the company's importance in Canada, there's no doubt the handset issues still exist. There's a chance that a software company could use BlackBerry's hardware, Wolff said, and that even if the handset devices don't survive, the brand name likely will. He concluded that while it's been a tough stretch for BlackBerry and its investors, it'll likely improve over both the short- and long-term. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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