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Samsung in Talks to Buy BlackBerry for $7.5 Billion [Updated]

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Apr 12, 2001
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Samsung has recently been in talks with BlackBerry about a potential takeover, reports Reuters. The South Korean company has reportedly offered to buy BlackBerry for $7.5 billion, in the hopes of acquiring BlackBerry's extensive patent portfolio. Executives from both companies are said to have met last week in order to discuss the potential deal.
South Korea's Samsung proposed an initial price range of $13.35 to $15.49 per share, which represents a premium of 38 percent to 60 percent over BlackBerry's current trading price, the source said.
The offer price would imply an enterprise value of $6 billion to $7.5 billion for BlackBerry, assuming conversion of $1.25 billion of convertible debt, according to the documents.

BlackBerry has struggled with flagging sales in recent years, and in 2013, the company received a takeover bid worth $4.7 billion from Fairfax Financial, but the deal ultimately fell apart. BlackBerry went on to receive interest from both Apple and Microsoft, among others, but was uninterested in breaking up the company to sell it piecemeal.

Ultimately, the company accepted investments and aimed to re-establish itself in the smartphone market, which led to the launch of the Passport, a large square-shaped phone, and the Classic, a throwback to original BlackBerry designs.

BlackBerry holds quite a few valuable patents, which are estimated to be worth $1 billion to $3 billion. In 2012 alone, its patent portfolio grew by 986 patents, many of which are relevant to competing smartphone companies like Samsung.

Update 2:40 PM PT: BlackBerry has issued a press release claiming that it has not communicated with Samsung about a possible purchase.
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.

Article Link: Samsung in Talks to Buy BlackBerry for $7.5 Billion [Updated]
 

maflynn

Moderator
Staff member
May 3, 2009
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Wow, didn't see that one coming. Looks like the IP portfolio is a bit more attractive the some people thought - or Samsung things it can leverage it.
 
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coolfactor

macrumors 601
Jul 29, 2002
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Vancouver, BC
Not surprised. Blackberry is hugely popular in many Asian countries, and Samsung would be wise to capitalize on that. But would this represent a shift in Samsung's direction? Will they keep the Blackberry brand alive?

----------

Wow, didn't see that one coming. Looks like the IP portfolio is a bit more attractive the some people thought - or Samsung things it can leverage it.

It's also about eliminating one more competitor, so consumers have fewer choices thereby increasing the chances of them choosing a Samsung product.
 
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ElZeus

macrumors regular
May 26, 2008
239
128
Well they sure as hell aren't trying to buy them for their designs...
 
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coolfactor

macrumors 601
Jul 29, 2002
4,909
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Vancouver, BC
At the end of the day, Blackberry has been a dead company walking, with the former co-CEOs of RIM responsible for failing to see the threat that Apple (and therefore the iPhone-inspired Android) represented. They mocked the iPhone, publicly, along with Steve Ballmer. Where are all of these people now? Ousted!
 
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Lancetx

macrumors 68000
Aug 11, 2003
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Hmm, we all know how well that Google acquisition of Motorola turned out. I guess we shall see if Samsung knows something that all of the rest of us don't.
 
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caligomez

macrumors regular
Feb 8, 2011
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San Juan, PR
It's also about eliminating one more competitor, so consumers have fewer choices thereby increasing the chances of them choosing a Samsung product.

The remaining Blackberry owners are pretty hardcore fans. I would think that if they wanted that share of the market, they would consider keeping the brand/designs alive to some extent.
 
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Silencio

macrumors 68030
Jul 18, 2002
2,548
400
NYC
A visual representation of this potential merger:

 
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Derekuda

macrumors 6502
Oct 2, 2004
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I hope this goes through! Then it will mean the end of iMessage as BBM takes the world by storm (pun intended), and we will see the iPhone's downfall which will finally get Apple off their thrown and force them to innovate like they once did before Jobs died.
 
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ugahairydawgs

macrumors 68030
Jun 10, 2010
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Didn't the Canadian government already squash a takeover bid by Lenovo for Blackberry? Why would Samsung be any different?
 
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nikicampos

macrumors 6502a
Jul 23, 2011
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329
Even the add has poor choices, making the little titles lag while presenting a new phone :rolleyes:
 
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nfl46

macrumors 604
Oct 5, 2008
7,313
5,653
:( NOOOOO...Samsung, don't you dare take BlackBerry from us!

<BlackBerry's #1 FAN!
 
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Alenore

macrumors 6502
Apr 7, 2013
423
426
I still own a blackberry, and if Samsung starts messing with them, it won't last long.

However, they're clearly not wanting to buy them for their handset division. Patents, QNX and BES are what is really worth it.

I still hope it's wrong, though. (MEanwhile, almost +30% on BBRY share :>)
 
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