LG, Samsung, Google, Intel, Cisco, SAP and others interested in bidding for BlackBerry?

LG, Samsung, Google, Intel, Cisco, SAP and others interested in bidding for BlackBerry?
BlackBerry's board, as you probably know, has agreed to sell the company to its biggest stockholder. While Fairfax Financial agreed to pay $4.7 billion or $9 a share for the troubled smartphone manufacturer, under the terms of the deal Fairfax was supposed to deliver a merger agreement to BlackBerry by Friday. Failure to do so would reduce the time that Fairfax would be allowed to conduct its due-diligence which originally was supposed to end on November 4th. At this point, we are not sure if this condition was met by the bidder.

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.

source: Reuters

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23 Comments

1. ScottSchneider

Posts: 336; Member since: Dec 06, 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: 545; Member since: Feb 23, 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: Sep 19, 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: May 29, 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: 66; Member since: Apr 21, 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: Sep 19, 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: Jun 12, 2012

intel already have tizen. tizen - meego + bada os

20. ollienightly

Posts: 37; Member since: Jul 23, 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: Sep 19, 2013

Why isnt apple interested It would be awesome Ios in blackberry...cool

21. JMartin22

Posts: 2326; Member since: Apr 30, 2013

No thanks ktnxbye

8. jedpatrickdatu

Posts: 169; Member since: Jan 24, 2013

I want Microsoft to buy Blackberry for the patents.

17. flynfree

Posts: 374; Member since: Jun 09, 2013

Monopoly!!!

9. Lampriya

Posts: 245; Member since: Oct 05, 2013

That is a result from copying Apple. RIP blackberyy :)

13. SlimSoulja86

Posts: 660; Member since: Nov 03, 2011

What did BB copy from Apple?

14. panda123

Posts: 27; Member since: Jan 18, 2013

In Apple fans' views, any smartphone is an iPhone copy.

10. bugsbunny00

Posts: 2255; Member since: Jun 07, 2013

i would like head android win bbm, thats google..

11. PAPINYC

Posts: 2315; Member since: Jul 30, 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: Aug 11, 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: Aug 31, 2013

I don't think Google will end up buying it. The Motorola acquisition was good enough.

16. cornerofthemoon

Posts: 619; Member since: Apr 20, 2010

Cue the Samsung "We have no interest in Blackberry" press release in 3, 2, 1...

18. jroc74

Posts: 6023; Member since: Dec 30, 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: Sep 26, 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: 614; Member since: Jul 28, 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.

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