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Microsoft to buy BlackBerry for $7 billion?

Posted: , by Alan F.

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Microsoft to buy BlackBerry for $7 billion?
Last week, we told you that rumors have started up once again concerning a possible acquisition of BlackBerry. This time, prospective suitors include Microsoft, Xiaomi, Huawei, and Lenovo. Back in January, it was Samsung that was said to have the hots for the struggling manufacturer and a price of $7.5 billion was even bandied about. But BlackBerry denied that it had been approached, and an offer from Samsung never materialized.

Today, there is speculation that Microsoft is about to make a $7 billion offer for BlackBerry. That would amount to a 26% premium for the stock, or a price of $13.23. BlackBerry's shares closed Friday at $10.48.

Recent reports indicate that the BlackBerry Passport and BlackBerry Classic aren't selling well and the company has just instituted a round of job cuts. Any buyer would be interested in BlackBerry for its reputation in secure communications and for the company's enterprise sales.

Back in 2013, BlackBerry's largest shareholder, Fairfax Financial, agreed to take the company private in a $4.7 billion deal. But the deal fell through which lead to the removal of Thorsten Heins as CEO. Heins was replaced by John Chen.

source: MobileBurn

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posted on 24 May 2015, 18:58 5

1. blazee (Posts: 407; Member since: 02 Jan 2012)


Surprised google is not bidding

posted on 24 May 2015, 19:00 1

2. AnTuTu (Posts: 1575; Member since: 14 Oct 2012)


MS offered $55 billions to SalesForce, they are on the roll. Looking forward to see MS buying BB.

posted on 24 May 2015, 19:06 2

5. sprockkets (Posts: 1611; Member since: 16 Jan 2012)


And salesforce isn't worth $55 by a long shot, and MS already has a better CRM to begin with.

Buying BB is a waste of money as well.

posted on 24 May 2015, 20:02

15. AnTuTu (Posts: 1575; Member since: 14 Oct 2012)


I agree with the SalesForce bit but not the other part.

BB can easily get upto $10 billion.

posted on 24 May 2015, 22:43

23. engineer-1701d (Posts: 3214; Member since: 13 Mar 2014)


MS AND BB TOGETHER WILL BE BETTER TO FIGHT THE OTHER 2

posted on 25 May 2015, 01:25

29. AnTuTu (Posts: 1575; Member since: 14 Oct 2012)


Imagine the enterprise offerings if this deal is successful. We already know what 'Continuum' is capable of. BB will add another layer of cream on top of it.

I look BB more into software side rather than a hardware company. BB already owns QNX and if that comes under MS, just imagine the possibilities. I am so excited if MS manage to close this deal :)

posted on 25 May 2015, 04:38 1

36. hound.master (Posts: 1044; Member since: 27 Feb 2015)


Microsoft is in no need of BB hardware and it's software is not worth 7 billion Microsoft most be a fool to buy BB.
Microsoft saved the Nokia already but blackberry is doomed.
And i don't wanna hear that Microsoft ruin the Nokia it was dying long before that.

posted on 25 May 2015, 05:01 3

42. meanestgenius (Posts: 9307; Member since: 28 May 2014)


If you really believe that Microsoft saved Nokia instead of just gutting them for their hardware division, then I've got a bridge to sell you in Brooklyn. I'll even give you a discount.

You really have no idea what you're talking about concerning how much BlackBerry is worth. If it were worth so little, do you really think suitors would be lined up in a bid to buy them?

posted on 25 May 2015, 06:08 1

43. elitewolverine (Posts: 5018; Member since: 28 Oct 2013)


About as much of a bridge as google gutting Motorola...Nokia was failing before Elop, or else they wouldnt have even hired Elop to begin with.

posted on 25 May 2015, 07:05 3

47. meanestgenius (Posts: 9307; Member since: 28 May 2014)


Uh, I AGREE that Google gutted Motorola for its patents and sold off the rest of Motorola to Lenovo.

And one billion dollars is a good reason to hire anyone.

posted on 25 May 2015, 08:56

53. hound.master (Posts: 1044; Member since: 27 Feb 2015)


Yeah i do.
What blackberry worth except patents, WP OS is secure enough already it's a complete waste of money for MS.
You know that the bidders worth s**t when they don't even bid or bid a very low price and there's no proof for a bid even.
And what exactly Nokia was doing before MS deal what was their best phone? And if you think Nokia would do better without MS you should find out why they let go of their phone division at the first place.

posted on 25 May 2015, 09:26 3

63. meanestgenius (Posts: 9307; Member since: 28 May 2014)


No you don't. You already admitted to not really knowing anything about BlackBerry in comment #56. BlackBerry's patents, security technology and software, and QNX far outweigh the 7 billion dollar price and make BlackBerry a commodity worth having for any tech company. Its not a "complete waste" at all, as evident by the amount of companies that wish to purchase them.

WP isn't anywhere near as secure as BlackBerry. If it were, they would have BlackBerry's position in enterprise and regulated industries right now.

You truly haven't a clue as to what you're talking about concerning BlackBerry. It goes beyond handsets.

posted on 25 May 2015, 10:38

64. hound.master (Posts: 1044; Member since: 27 Feb 2015)


I do that believe that Microsoft saved Nokia and i say that the hardware of blackberry doesn't worth to anyone and i already see governments replacing BlackBerry handsets to WP one.
I don't no about BB software or other things but that's the only thing anyone buys no one really wants a broken phone company Nokia was just lucky.

posted on 25 May 2015, 11:59 3

71. WallStreetWolf (Posts: 289; Member since: 08 Apr 2013)


They don't care about the handsets!!! How hard is that for you to grasp?

BlackBerry still has a huge contract base with data sensitive organizations such as military outfits, governing bodies, banking firms, etc. They carry over 4000 patents and have the most secure operating system in the smartphone market. They also have BES which owns the enterprise market. And then there is QNX (the basis of BB10) already running operations in 50 million vehicles and growing worldwide. It also creates the RTOS found in our energy industry such as nuclear power plants.

The Windows firm is not moving a bunch of phones to business all over the world, because of BYOD cross-platform solutions like BES12 and Good. The Microsoft acquisition of BlackBerry would give them all of those benefits to implement into Windows 10 phones and tablets. Every IT department would not only switch their enterprise management over to Microsoft, but they would order their phones and bundled services as well with confidence.

BlackBerry is waiting for their software and services to bring in enough profit, so they can turn their smartphone division into a specialty market for parties that value security where they sell 7-8m phones a year (Which will be very tough). If that doesn't come to fruition, Chen and his board will have to weigh the option of a sale. Everybody b*tched about the NSA, but they all continue to carry vulnerable devices.

To wrap this up, Microsoft would become the king of security software services and they would take over the huge infrastructure that QNX covers. They are already trusted as a financially stable company and have an excellent relationship with the world as a computer solution. Companies could get cheaper Microsoft devices with BlackBerry security and eliminate a lot of the need for BYOD since Windows Phone has enough of an ecosystem that will continue to build with the features of the Windows 10 platform and its app flexibility. If BlackBerry was acquired by Microsoft, their marketshare would dramatically increase over the next 5 years.

I wrote this novel, so you can get a clear understanding of why they are so valuable. They don't have suitors for their hardware market though their devices are more than capable. It is all about their patents, security services, and QNX.

posted on 25 May 2015, 12:56

74. hound.master (Posts: 1044; Member since: 27 Feb 2015)


yeah they can do that but all the phone hardware part is useless for them since they bought the NOKIA isnt it?
but for the other things then yeah they can get benefit off that.

what i say is we are not about to see a BLACKBERRY passport like phone anymore if the company been sold.

posted on 24 May 2015, 19:04 2

3. Galaxy_Apple (Posts: 91; Member since: 24 May 2015)


this will kill of BBM once and for all if it happens , Microsoft tis famous for killing products they acquire.

but have to give credit to the new CEO he is a lot better/smarter than Ballmer was, it's important to have vision at the top and set a goal of what the company should achieve in the coming years.

For the first time in years MS is doing many things right , Windows 10 , Directx 12 pushing boundaries ,acquiring good developers from iO.S like accompli email ,Sunrise calendar now wunderlist etc.
Office for iO.S n Android + 365 is the new source of huge income.

hololens is more for devs but it's exciting when was the last a Microsoft technology was exciting.

posted on 25 May 2015, 04:44 1

38. hound.master (Posts: 1044; Member since: 27 Feb 2015)


Hololens is mostly a gaming tool i mean just imagine a game most likely playing Minecraft with it.

posted on 25 May 2015, 06:10 2

44. elitewolverine (Posts: 5018; Member since: 28 Oct 2013)


Yet nearly everything they showed was not gaming this last round and even in their advertisements. It has more real world applications than just gaming. The fact they already have a medical app up and running before release from a major player in the med field is enough to solidify it as a production device.

posted on 25 May 2015, 09:03

59. hound.master (Posts: 1044; Member since: 27 Feb 2015)


Yeah of course but just the idea of making a change like this maybe that's even why they bought Minecraft

posted on 24 May 2015, 19:05 4

4. meanestgenius (Posts: 9307; Member since: 28 May 2014)


Not gonna happen. More market manipulation.

Were this to go through, it's bye-bye BlackBerry, ala Nokia handset division.

posted on 24 May 2015, 19:11 2

6. arch_angel (Posts: 1651; Member since: 20 Feb 2015)


lenova doesn't need it they already have Motorola.

posted on 24 May 2015, 19:31 1

11. sgodsell (Posts: 3077; Member since: 16 Mar 2013)


Microsoft doesn't need to buy blackberry.

posted on 24 May 2015, 19:37

12. arch_angel (Posts: 1651; Member since: 20 Feb 2015)


yeah they should put that money into R&D for there phones and tablets instead of using it to buy a dying company.

posted on 24 May 2015, 22:45

24. engineer-1701d (Posts: 3214; Member since: 13 Mar 2014)


its about the patents the royalties and law suit protection

posted on 25 May 2015, 01:14

28. lyndon420 (Posts: 3730; Member since: 11 Jul 2012)


Ms will be doing this for the patents guaranteed.

posted on 25 May 2015, 07:06

48. meanestgenius (Posts: 9307; Member since: 28 May 2014)


*Lenovo

posted on 25 May 2015, 11:11

70. arch_angel (Posts: 1651; Member since: 20 Feb 2015)


Yeah made a typo while using my phone.

posted on 25 May 2015, 13:01

75. meanestgenius (Posts: 9307; Member since: 28 May 2014)


iPhone?

posted on 25 May 2015, 13:06

77. arch_angel (Posts: 1651; Member since: 20 Feb 2015)


no s6 but i do have a 5s

posted on 24 May 2015, 19:20

7. theguy2345 (Posts: 1180; Member since: 24 Jun 2014)


Looking forward to see what enhancements it makes to MS's own products. Probably security related.

posted on 24 May 2015, 19:23 2

8. javy108 (Posts: 1004; Member since: 27 Jul 2014)


Hope this happens

posted on 24 May 2015, 19:27 4

9. VZWuser76 (Posts: 3639; Member since: 04 Mar 2010)


While I hate to see less competitors in mobile, they would have an amazing enterprise offering.

posted on 24 May 2015, 19:31 2

10. MuddyCow (Posts: 65; Member since: 09 Oct 2014)


I really hope this is true, this iwould give huge possibilities for MS in the corporate market, and with Windows 10 coming and it's business features, it would be a great OS for hardware like the BB Passport.

posted on 24 May 2015, 19:55 7

13. Dr.Phil (Posts: 1097; Member since: 14 Feb 2011)


No offense, but this is just the same article that was reported on PA a couple of days ago just with a different spin. The source article talks about the same three companies mentioned earlier: Xaomi, Lenovo, and Microsoft. It also NEVER mentions Microsoft offering such a bid. It simply states:

"Several reported have suggested BlackBerry could cost as much as $7 billion, just two years after it was rumoured Lenovo made a $1 billion bid for the company."

I'm confused as to how this one line that mentions 'several reported have suggested Blackberry could cost as much as $7 billion' translates into: "Today, there is speculation that Microsoft is about to make a $7 billion offer for BlackBerry." In my book we like to call that a reach.

posted on 24 May 2015, 20:37

16. Settings (Posts: 1448; Member since: 02 Jul 2014)


PA should hire you as part of their editorial. They just post whatever article they had, clickbaits and site traffic are all they after. And that paycheck from Samsung.

posted on 24 May 2015, 20:00 2

14. meanestgenius (Posts: 9307; Member since: 28 May 2014)


Totally agree with Dr. Phil. This is the same article as the other day with another spin. Must be a slow news day.

posted on 24 May 2015, 20:49 3

17. Mxyzptlk (Posts: 10635; Member since: 21 Apr 2012)


Sames ones who whine every time PA makes a BB article fail to see the big picture here. BB is slowly dying. Microsoft or any other company buying them would save them from an otherwise painfully slow death. Microsoft already has reach in the business market. Some of you shouldn't be clouded by ignorance.

posted on 24 May 2015, 21:00 3

18. Crispin_Gatieza (Posts: 1559; Member since: 23 Jan 2014)


Dying companies are not the type to be bought. You need to have an understanding of how business works. If BB was truly dying, as so many here wish, there wouldn't be companies lining up to buy them. They'd be hanging around the bankruptcy courts waiting on liquidation hearings to gobble up the bits they want for pennies on the dollar.

BlackBerry is turning a profit even on their handset division as evidenced by two consecutive quarterlies and THAT is what's making them attractive to potential suitors. BB's patent portfolio is the real player here and if Microsoft can snatch them up now for $7 Billion, it would be a steal. A few more quarters of profits and the price tag goes way up. Here endeth the lesson. I should be getting paid for the free education I'm providing.

posted on 24 May 2015, 21:08 3

19. meanestgenius (Posts: 9307; Member since: 28 May 2014)


Same ones who wish death on BlackBerry and jump on them every article that PA puts up about them fails to see beyond their own ignorance. These are the ones that don't know a thing about BlackBerry beyond handsets, and don't care to know, either.

If BlackBerry were "dying" like you suggest, nobody would want it. You wouldn't see companies lined up wanting to make an offer. The truth is, BlackBerry is profitable again, but the trolls can't see beyond their own !Diocy and ignorance.

posted on 25 May 2015, 08:30 1

51. Mxyzptlk (Posts: 10635; Member since: 21 Apr 2012)


So where's this proof that they're profitable? Seems to me like Chen is saying very little other than the predictable.

posted on 25 May 2015, 08:58 1

54. meanestgenius (Posts: 9307; Member since: 28 May 2014)


Guess you missed the last two earnings reports from BlackBerry, where they reported a profit in both.

posted on 24 May 2015, 21:12 2

20. BobbyDigital (Posts: 1821; Member since: 29 May 2014)


You don't even know what you're talking about. You sound retarded right now. Stop it.

posted on 25 May 2015, 08:28 1

50. Mxyzptlk (Posts: 10635; Member since: 21 Apr 2012)


That's rich coming from someone who's only motive is being a yes man.

posted on 25 May 2015, 09:02 1

57. meanestgenius (Posts: 9307; Member since: 28 May 2014)


That's rich coming from someone who's only motive is to troll anything that's not Apple/iOS.

posted on 25 May 2015, 09:03 1

58. BobbyDigital (Posts: 1821; Member since: 29 May 2014)


And your only motive is to be a troll. Like the iDiot you are.

posted on 24 May 2015, 22:48

25. engineer-1701d (Posts: 3214; Member since: 13 Mar 2014)


think about all the employees getting laid off thin if that was you, you want a big mono to buy you and get better everything, plus we all know how windows has the world in its hands as company and office comps go, think if windows 10 or 11 would have bb protection no hacks no blue screen of death i know its been years since them but still this could only be good.

posted on 24 May 2015, 21:34

21. 7thspaceman (Posts: 1515; Member since: 14 Feb 2011)


I agree with a Commenter above MS CEO is a MS Enterprise man Blackberry must has some very very Good software patents and capabilities MS wants to use in it's Enterprise
software Portfolio. Microsoft can dominate the PC Tablet market if it cut the price of it's
renown award winning "Surface Pro 3" tablet. to make the Surface a better tablet than it is it does need a stiff conventional plastic keyboard Dock like Lenovo has for it's Windows PC tablets. an MS PC tablet with some Blackberry soft ware could make the Surface Pro's or any Windows tablet a damn good business Tablet if Microsoft does get blackberry I think it will not be changed to look like a Nokia lumia Plastic smart phone. it's screen might not even get tiles so it will keep it's distinctive Blackberry look but it will use MS universal Apps and MS services. the phone will have a Microsoft logo on it's back under the words "Blackberry"

posted on 24 May 2015, 22:35 2

22. tatail (Posts: 247; Member since: 08 Jan 2010)


Not going to happen.
John Chen will only sell BBM for that price not the company as a whole

posted on 24 May 2015, 22:55

27. engineer-1701d (Posts: 3214; Member since: 13 Mar 2014)


he has no chance for years saying he will turn it around a slight profit means nothing in the corporate world plus laying off thousands of people thats what you call a profit your a sad company thats had its 5 mins of fame,
its like myspace or napster or aol, netscape before google and all that i remember waiting 5 mins for dial up to connect and sometimes fail and if you had one line and the phone disconnected noooooo. hahahaha
go ms you need bbm for phone and patents to make yours better.

posted on 25 May 2015, 04:47 1

39. meanestgenius (Posts: 9307; Member since: 28 May 2014)


Chen has only been in charge for 2 years, and in those two years he's made the company profitable again. BlackBerry is the biggest player in the corporate world, they're not going anywhere anytime soon. If you really believe that BlackBerry is going to Microsoft, then then you must believe everything that's posted on the internet.

By your logic, Sony and HTC are doomed and going out of business and should sell immediately. Motorola, too. Oh wait...

posted on 25 May 2015, 06:14

45. elitewolverine (Posts: 5018; Member since: 28 Oct 2013)


Sony has restructured their handset division yet again amid less than stellar sales. Moto was sold, and sold specifically for their patents. HTC not dying but i dont think their m9 has gathered the eyes they wanted.

posted on 25 May 2015, 07:08 1

49. meanestgenius (Posts: 9307; Member since: 28 May 2014)


And yet, you probably agree that BlackBerry restructuring means that they're doomed...

posted on 25 May 2015, 09:08 1

61. BobbyDigital (Posts: 1821; Member since: 29 May 2014)


Agreed. EliteWolverine probably does think BlackBerry is doomed. He'd be wrong but this isn't the first time. He also thinks Windows 10/WP is a viable OS and that they're going to be around in the next five years. Too bad WP's declining market share state otherwise.

posted on 25 May 2015, 01:58

32. JoniCen (Posts: 18; Member since: 24 May 2015)


I'm really sad to tell all my friend that BBM offer a small value.

I already try to sell BBM, but with only 20 million real user, our BBM only valued at 2 million dollar at best.

posted on 25 May 2015, 09:05 1

60. BobbyDigital (Posts: 1821; Member since: 29 May 2014)


I'm not sorry to tell you janechenlong, that you will be banned again before the month is out.

posted on 24 May 2015, 22:50

26. kryme (Posts: 326; Member since: 24 Oct 2013)


All that patents

posted on 25 May 2015, 03:11

34. Suo.Eno (Posts: 475; Member since: 17 Feb 2013)


I'd rather see MS spend that 7bill on actually paying all the devs to make Astoria and Islandwood work instead. They got real priorities there and should avoid from fattening up a bunch of lawyers.

posted on 25 May 2015, 10:52

66. SitiNurbaya0 (Posts: 153; Member since: 22 May 2015)


I agree with you.

I don't understand why Microsoft want to buy Blackberry. I'm from Indonesia, the country of many BB fans, I also use BB in the past. But now, everyone want android. Microsoft better buy Android instead of Blackberry, or make android phone.

posted on 25 May 2015, 11:06 1

69. meanestgenius (Posts: 9307; Member since: 28 May 2014)


The level of ignorance in this post is astounding. IF this article that PA has posted has any truth to it, and I said IF, your post indicates that you don't have the first clue as to why Microsoft would be interested in purchasing BlackBerry.

posted on 25 May 2015, 06:18

46. tomakali (Posts: 17; Member since: 12 Dec 2011)


Buy BB and what???
MS buying power is good
MS marketing power is almost ZERO

Esp in India
No one cares about Bing
No one cares about .Net

its better to tieup with Ministry of Higher Education in countries like India, Middle East, East Asian countries etc to define the syllabus of Microsoft's next gen productivity suites, opensource .net etc

% of people learning and adapting to opensource .net in the next 5 years is crucial
no matter how many billions is wasted in buyout or other companies etc
its the developers and consumers who mindshare which has to be bought

eg: in My work im in charge of product development. i ask my dev partner to build apps on xamarin so that we can use it on all platforms he simply refuses. reason being his company has ZERO developers in dotnet. he so casually asks me to find someother company for dotnet resource.
php and aws rules in India for sure
and ROR more recently
Azure and C# interest level is going down
although im not representing the whole country of India
im worried about the mindset of people in education sector
I hope Satya know this situation already...

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