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’.
given Blackberry sales in mature markets I am surprised that they would be worth 7.5b. they must have a crap load of patents.
They do, and they are known for abusing the patent sys-scam for running lawsuits against any potential competitor.
They’ve been suing various tech firms, since the turn of the Milenium.
I am totally against anything which gives Samsung more power and control over the smart device industry. Samsung are just like Apple: They create overrated products which sell at an extortionate price because of their name and brand.
If this rumour of Blackberry selling out is true, hopefully someone else comes in and makes a higher bid (preferably a company like Motorola/Lenovo or LG, who make excellent products but don’t quite have the same brand popularity as Samsung).
If the companies u stated like Motorola/Lenovo or LG have a better market like samsung i’m sure that they will extortionate price of their products. its all that they make hey while sunshines. Their are into business not service. but remember samsung products are rated as highest customer satisfaction for 2014.
Do you work for Samsung?
Do you work for anti Samsung team?
You didn’t answer my question.
I work for the anti fanboy society. I don’t have a problem with any brand, I buy products on what they offer me not their badge! Unlike some people on this thread 🙂
wow….u really take these to heart…dont u….relax dude, people have right to express their view, u don’t have to be so offended. just chill.
No i don’t work for samsung, and i don’t mind to work for them. pleasure to work for a company which is on the top position.
I’m a nexus user from years.
We have to admit that its samsung who really contributed in brining the android to the masses in recent years. just read the comments and u will understand what i really mean. But please do get a break and relax ;p
Veejay I’m not bagging Samsung
I just found your earlier post quite humerous.
“remember samsung products are rated as highest customer satisfaction for 2014”
You cannot back that up, sounded like you were an employee of the Samsung marketing team. hehehe 🙂
No hard feelings didn’t want it to appear like a personal attack. Sorry if you took offence.
I know English isn’t your first language, but at least try to make your paragraphs make sense.
Now you are worried about English and grammar
If you think you can stop a company as large as Samsung, think again. They have their hands in almost everything electronics. Even military hardware. You’re worrying over something so small.
Samsung are overpriced because they spend so much money on marketing.
Like Beats headphones.
Not a Samsung fan and don’t really care which manufacturer sells more devices!
I just want the best experience for me!
I laugh when fanboys back up their brand like they work for them!
Samsung is expensive as a market position statement. They want to be seen as a prestige product. And part of creating that image is price.
Of course it also makes Samsung quite wealthy.
If it’s true, Blackberry should grab on with both hands and say “Oh god yes, take me Samsung, take me.”