Rumors were flying last week about a possible acquisition of BlackBerry by Samsung. While both companies denied the rumors, sending BlackBerry stock straight down, the rumors persist. Samsung is apparently interested in valuable BlackBerry patents as it competes head to head with Apple. BlackBerry would love to be bailed out as it has struggled in recent years. Will a deal happen? So far, both companies are still denying the rumors.
Reuters is now reporting specifics about a possible deal between the two companies.
BlackBerry issued a pretty specific denial, saying the company had "not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry."
While an acquisition of BlackBerry could make sense, they are in a turnaround period. If Samsung pays a premium, BlackBerry will have no choice but to do what is best for the shareholders. At this point though, it is hard to see how Samsung helps BlackBerry in the long term. They would likely grab the IP and dump the hardware.
Reuters is now reporting specifics about a possible deal between the two companies.
South Korea's Samsung (005930.KS) proposed an initial price range of $13.35 to $15.49 per share, representing a premium of 38 percent to 60 percent over BlackBerry's current trading price, the source said on Wednesday.
BlackBerry issued a pretty specific denial, saying the company had "not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry."
While an acquisition of BlackBerry could make sense, they are in a turnaround period. If Samsung pays a premium, BlackBerry will have no choice but to do what is best for the shareholders. At this point though, it is hard to see how Samsung helps BlackBerry in the long term. They would likely grab the IP and dump the hardware.