BlackBerry hardware unit of no real value to any potential suitor

BlackBerry hardware unit of no real value to any potential suitor
Michael Walkley, analyst at Canaccord Genuity, Inc., was diplomatic in his assessment of BlackBerry’s handset business, “We struggle to assign any value to the hardware business…” He continued to explain that any potential buyer of the troubled company would want to migrate the customer base to its own platform and products.

Hugu Miller of Bloomberg was a tad more direct, “BlackBerry’s once-lucrative services business and hardware unit would have zero value in a breakup…” (emphasis added).

A break-up of the company is the scenario that most of the money-types are expecting to come out of whatever “explorations” BlackBerry performs to determine a course of action.The reason for the expected break-up of the company is because of the perception that no single entity wants buy BlackBerry as a whole company.

The services based parts of the business like the operating system and the treasure trove of patents and secure servers. One thing that is not in the immediate picture is bankruptcy as BlackBerry has nearly $3 billion in cash plus another several billion in cash equivalents. “More than enough to ward off bankruptcy.”

source: Bloomberg via BGR

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9 Comments

1. icyrock1

Posts: 307; Member since: Mar 25, 2013

I figured has much. BlackBerry's real value is in there software patents.

4. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Software patents have been leap-frogged for the most part. Triple DES encryption has been replaced by AES256 for example. Push-notifications have been licensed to almost everyone, so no new benefit there. And, and, and.

2. dorianb

Posts: 617; Member since: Oct 24, 2012

I'll give them $5 & a pack of '84 Topps trading cards for the hardware division. Final OFFER!!!

3. PhoneCritic

Posts: 1372; Member since: Oct 05, 2011

Even that's to much. Make it $5 and the stick of gum that came with the cards (84 card are to valuable) Lol. Seriously I hope BB can actually survive this and emerge as a services company. Their secure messaging is very valuable but it loses value every day as others are continually improving their competitive offerings. Time is of the essence

5. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

The time for BB as a services company has actually passed. As you posted, competitors are continually improving their offerings. iMessage is better than BBM at this point.

9. axllebeer

Posts: 272; Member since: Apr 05, 2011

Going to have to disagree with the iMessage statement. Have you even used the recent releases of BBM? The separation of text messages and iMessage is pretty important to me.

6. mobi_user

Posts: 152; Member since: Jun 18, 2013

doomsday apocalypse heading for BB

7. Altair

Posts: 367; Member since: Feb 02, 2012

RIM = RIP BB = RIP in less than 2 years

10. gazmatic

Posts: 822; Member since: Sep 06, 2012

if only canonical was rich enough to buy rim... i can imagine the big three are eying it for the patents or maybe intel, amd or nvidia

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