This issue has a workaround:

Download 7.9 radeon driver Ubuntu package (xserver-xorg-video-radeon-
hwe-16.04_7.9.0-0ubuntu1~16.04.1_amd64.deb) from:

https://launchpad.net/ubuntu/xenial/amd64/xserver-xorg-video-radeon-
hwe-16.04/1:7.9.0-0ubuntu1~16.04.1

Execute the following on the downloaded .deb file:

> sudo dpkg -i xserver-xorg-video-radeon-
hwe-16.04_7.9.0-0ubuntu1_16.04.1_amd64.deb

> sudo apt-get -f install

> sudo apt-mark hold xserver-xorg-video-radeon-hwe-16.04


This downgrades the radeon driver package to version 7.9, fixes dependencies, 
and holds the driver pkg from further updates.

Upon rebooted, issue is resolved.

A bug has been reported to Freedesktop at:
https://bugs.freedesktop.org/show_bug.cgi?id=105217


** Bug watch added: freedesktop.org Bugzilla #105217
   https://bugs.freedesktop.org/show_bug.cgi?id=105217

-- 
You received this bug notification because you are a member of Ubuntu-X,
which is subscribed to xserver-xorg-video-ati-hwe-16.04 in Ubuntu.
https://bugs.launchpad.net/bugs/1750393

Title:
  Blank screen with only mouse pointer after mesa driver update; display
  does not switch to tty7 upon lightdm start; Xorg.0.log quickly grows

To manage notifications about this bug go to:
https://bugs.launchpad.net/ubuntu/+source/xserver-xorg-video-ati-hwe-16.04/+bug/1750393/+subscriptions

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