Comparing Apples to BlackBerrys is apt to leave a sour taste in the mouths of Canadians today.
Waving a white flag, former smartphone pioneer BlackBerry agreed this morning to be acquired for $4.7 billion by a consortium of investors led by Prem Watsa’s Fairfax Financial, which already owns 10% of the company.
The deal isn’t done—due dilligence must come first, and Fairfax is still allowed to back out—but that doesn’t change the fact that BlackBerry is allowing itself to sell for less than $5 billion.
At $5 billion, the company is selling itself for $9 per share. That’s a slight premium over its current trade value—just over $8—but a far cry from $140, which it was trading at in 2008. Back then, the company was worth well over $80 billion. As recently as 2009, the market value of Apple was as litle as $77 billion. Now one is worth $5 billion and one is worth $450 billion.
For even more grim perspective, Apple earned over $5 billion this past weekend from iPhone sales alone, more than the total value of BlackBerry including its cash horde and patents—and remember, that figure is excluding revenues from Apple’s other products such as the iPad and MacBook lineups.
Granted, it was the opening weekend for iPhone 5S and 5C sales; Apple’s three-day revenue is normally lower. Still, it goes to show the two wildly different paths the two tech titans have taken since 2009.