BlackBerry and Samsung announced a security partnership last November which would see BlackBerry’s security platform integrated with the security software in Samsung’s Galaxy devices. Reuters is reporting today that the previous partnership could simply be a first step in a Samsung acquisition of the Canadian company.
UPDATE (01/14/2015 18:40ET): BlackBerry has issued a press release stating that they are not in talks with Samsung regarding a possible acquisition.
Waterloo, ON – 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 rumors or speculation, and accordingly it does not intend to comment further.
According to an unnamed source and documents provided to Reuters, both companies met last week to discuss a potential merger at a premium of up to 60% over the current trading price of BlackBerry. If true, this would value the Canadian mobile device company at between $6 billion to $7.5 billion. According to documents, the transaction would give Samsung access to BlackBerry’s patent portfolio.
A buyout by Samsung could be a welcome move for the troubled company, once a mobile powerhouse in the business world. The Canadian company has seen little success in trying to reinvent itself and remain relevant as a legitimate mobile device choice. Investors hopped on the rumors as BlackBerry stocks rose as much as 30% after reports of Samsung’s interest.
What do you think of these reports? Would Samsung be getting its money’s worth for the company? Let us know what you think in the comments below, or on Google+, Facebook, or Twitter.Source: Reuters Source: BlackBerry