Technology is wonderful. But it can be mightily cruel too.
We remember the launch of the early BlackBerry [NASDAQ: BBRY] phone models in the late 1990s and early 2000s.
It was so different to everything that went before.
The shape, the screen, what you could do with it.
As we recall, it was more of a data device than a phone because you couldn’t hold it to your mouth and ear to talk. You had to use a handsfree headset.
But now, barely more than a decade after BlackBerry revolutionised the world of mobile communications, the company is about to die.
It’s a worthy reminder to investors that just because something has always ‘been around’ doesn’t mean it will always be around in the future…
As Bloomberg News reported yesterday:
‘BlackBerry Ltd., once valued at $83 billion, may be stuck with the cheapest valuation ever for a North American technology or telecommunications takeover.
‘The smartphone maker said yesterday it reached a tentative agreement for a $4.7 billion buyout by a group led by Fairfax Financial Holdings Ltd., its biggest shareholder. Including net cash, the proposal values the Waterloo, Ontario-based company at an 80 percent discount to its book value and just 0.17 times its sales, the cheapest revenue multiple on record among similar-sized North American telecommunications or technology acquisitions…‘