According to reports surfacing this morning that Samsung has reportedly approached Canadian company, Blackberry, regarding a potential buyout of the company.
Reuters are reporting that Samsung has apparently offered to purchase the company for as much as $7.5 billion. The purchase would allow Samsung access to Blackberry’s extensive patent portfolio, as well as a more key in-road to the lucrative corporate and business market that Blackberry has historically been relatively successful in.
Executives from both companies are reportedly working with advisers, who met last week to discuss the potential sale, according to the source who did not want to be named. The reported buyout has had a positive effect on Blackberry’s share price, which has seen a 29.71% jump from its previous share price of $9.71 to land at $12.61 per share. According to the source, Samsung has given an initial buyout price range of $13.35 to $15.49 per share.
The price offer apparently ensured an enterprise value of $6 billion to $7.5 billion for BlackBerry, however this is only guaranteed if the debt for Blackberry is convertible according to the documents seen by Reuters.
Samsung and Blackberry first began working more closely last November when they announced a partnership to utilise Blackberry security software on Galaxy smartphones.
While Samsung could not be reached for comment by Reuters, Blackberry has issued a statement denying the rumour :
BlackBerry Limited (NASDAQ:BBRY)(TSX:BB) (“BlackBerry”) is aware of certain press reports published today with respect to a possible offer by Samsung to purchase BlackBerry. BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry. BlackBerry’s policy is not to comment on rumours or speculation, and accordingly it does not intend to comment further.
Samsung has apparently told Reuters that they have no plans to purchase Blackberry, advising ‘Media reports of the acquisition are groundless’.