Blackberry Agrees to Buyout

A man silhouetted against a video screen with the Blackberry logo poses with a Blackberry Q10, September 21, 2013.

Canadian smartphone manufacturer Blackberry has agreed to a $4.7 billion buyout by its largest shareholder.

The company announced in a statement Monday that it signed a letter of intent with Fairfax Financial Holdings Limited. Under the proposed deal, the Canadian holding company will pay Blackberry shareholders $9 a share.

On Friday, the struggling company announced quarterly losses of $1 billion, as well as plans to cut 40 percent of its workforce.

Blackberry virtually invented the smartphone nearly 10 years ago with a line of blocky devices with small thumb-operated keyboards.

Despite the recent launch of a new touchscreen device in January, the company has continually lost market share to Apple's iPhone and a number of other devices powered by Google's Android operating system.