LG, Samsung, Google, Intel, Cisco, SAP and others interested in bidding for BlackBerry?
We've already heard that another financial firm, Cerberus Capital Management was interested in the company. But a Wall Street analyst, Pierre Ferragu at Bernstein Research, predicts that BlackBerry will burn through most of its cash by February 2015, making an acquisition by a financial firm more difficult. The deal with Fairfax has generated plenty of skepticism because of a lack of financing. If BlackBerry pulls out, it will owe Fairfax a $150 million break-up fee.
On Saturday morning, a new group of potential bidders was mentioned in a published report. All of the names are non-financial tech companies which means that they are less interested in cash in the bank and more interested in patents, the companies enterprise business including BES, and to a lesser degree, the current BlackBerry 10 lineup. With nearly $1 billion of BlackBerry Z10 units written off by the Canadian based manufacturer, there could be some other assets with a declining value. The value of BlackBerry's patent portfolio and licenses will probably be cut in half over the next 18 months, BlackBerry itself says in an official filing.
Before we list some of the new names supposedly interested in BlackBerry, let's try to put a value on the company. According to analysts, BES could be worth $3 to $4.5 billion. The Intellectual Property portfolio is probably worth $2 to $3 billion and the company now has $3.1 billion in the bank with no debt. This adds up to as high as $10.6 billion. But we shouldn't count on the cash and the patents could be down to a value of $1.5 billion at best within a year and a half. That would bring the value of the company down to $5.5 billion, not much wriggle room from the current bid by Fairfax Financial. And problems continue to pop up. Just Friday, Canada's largest carrier Rogers, right in BlackBerry country, announced that it will not carry the upcoming high-end BlackBerry Z30 handset.
The tech names said to be looking at BlackBerry include Google (which probably covets BES), Intel, Cisco, SAP, and the Korean giants LG and Samsung. All but Samsung refused to comment. Samsung could not respond immediately.
BlackBerry has a special five member committee of board members looking after the sale of the company. The committee consists of Timothy Dattels, Chairman Barbara Stymiest, Chief Executive Thorsten Heins, Richard Lynch and Bert Nordberg. In a situation like this, BlackBerry and its board have separate advisers because you never know when there might be a conflict. Advising BlackBerry are a pair of Wall Street takeover veterans, JP Morgan Chase & Co and RBC Capital Markets. The board is being advised by a trio of well worn Wall Street players. Perella Weinberg Partners is supposedly handling strategy for BlackBerry's board while legal advice is coming from high paid law firms Skadden, Arps, Slate, Meagher & Flom LLP and Torys LLP.
1. ScottSchneider (Posts: 324; Member since: 06 Dec 2011)
I think their Patents are a good to be acquired by google so they can diversify more in the industry... Nowadays every one is only looking at buying patents rather than exploring the new environments... Probably because the patent war was all started by MS and Apple... Finally all the companies will be owned by only one company... MONOPOLY... who knows who...
3. pokharkarsaga (Posts: 365; Member since: 23 Feb 2012)
Google is the best bidder for blackberry.Qnx merged in android will be the best operating system on mobile,tablet & desktop.
6. MobileKicker (Posts: 212; Member since: 19 Sep 2013)
Im giving a breaking news sure PA would make an article
In the last 7days there were more than 2947 amdroid mobile threats found
7. Shatter (Posts: 2036; Member since: 29 May 2013)
Monopoly's are illegal in most places which is the reason Intel who made the x86 architecture has to let AMD use it. If they told amd to screw off and they would make the only x86 chips then the government would step in and force Intel to let someone else make x86 chips so they don't have a monopoly on desktop/laptop CPUs.
2. Damitel (Posts: 65; Member since: 21 Apr 2013)
would be worse if a company with no or little vision buys Bb only to leave us with more bitter news in our mouth. I think Google or Samsung is capable.
4. MobileKicker (Posts: 212; Member since: 19 Sep 2013)
If google will buy it. It will have android
But if intel will buy it they will continue bb os
Intel should buy it
19. RapidCat (Posts: 351; Member since: 12 Jun 2012)
intel already have tizen. tizen - meego + bada os
20. ollienightly (Posts: 37; Member since: 23 Jul 2013)
BB OS is doomed in any cases. Apple, Google, Microsoft and Intel/Samsung already have their own OSes and by far better received than BB10. LG can't afford to make it on their own and Cisco/SAP are not interested in the mobile war.
5. MobileKicker (Posts: 212; Member since: 19 Sep 2013)
Why isnt apple interested
It would be awesome
Ios in blackberry...cool
8. jedpatrickdatu (Posts: 160; Member since: 24 Jan 2013)
I want Microsoft to buy Blackberry for the patents.
9. Lampriya (banned) (Posts: 245; Member since: 05 Oct 2013)
That is a result from copying Apple. RIP blackberyy :)
14. panda123 (Posts: 27; Member since: 18 Jan 2013)
In Apple fans' views, any smartphone is an iPhone copy.
10. bugsbunny00 (Posts: 1440; Member since: 07 Jun 2013)
i would like head android win bbm, thats google..
11. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)
They should sell Blackberry to Apple and give birth (and then death) to AppleBerry; has a nice soothing ring to it.
This way Blackberry users can have the iPhone they've always wanted but were in denial to get. And, iPhone users can finally have a good messenging agent on their phones via the newly redesigned iBBM. It's a win-win for all!!!
12. rusticguy (Posts: 2828; Member since: 11 Aug 2012)
The whole Fairfax offer is just a ploy by Prem Watsa to get some bidders into the fray so that he finally has a better deal for the (10%) shares of BB that he holds.
15. Miracles (Posts: 560; Member since: 31 Aug 2013)
I don't think Google will end up buying it. The Motorola acquisition was good enough.
16. cornerofthemoon (Posts: 546; Member since: 20 Apr 2010)
Cue the Samsung "We have no interest in Blackberry" press release in 3, 2, 1...
18. jroc74 (Posts: 5245; Member since: 30 Dec 2010)
Hate to say it but many ppl on here and around the net called this over the past few years. Even tho I like what I see from the new BB OS and the all screen phone....guess it isnt enough.
Since the iPhone is gaining headway in the govt and corporate America, Google better do all they can to buy BB.
22. 24-7two (Posts: 2; Member since: 26 Sep 2013)
I really hope Google does buy Blackberry and BBM, although BBM wanted to be on its own, but that would lead to a BBM-like default SMS message app on all android phones and that would crush iMessage.
23. cdgoin (Posts: 375; Member since: 28 Jul 2010)
MAJOR thing I noticed was the BB10 phones came out with cameras running 2-3 years behind.. They didn't look at the whole pictures, than and they came out with the Z10 first.. should have come out with the Q10 and a camera that was at minimum on par with mid-range Androids. I want MS to buy them and come out with a Q10 on WP.. and the Nokia 925 camera.. THAT would rock.