A recent Reuters report stated that a few technology firms,
), are in talks to buy the beleaguered BlackBerry handset
). However, none of these companies have confirmed the news.
According to an anonymous source, a few days back BlackBerry
had explored a strategic option to convert the company into a
private entity. Its largest shareholder, Fairfax Financial
Holdings, was the prospective buyer, offering a $4.7 billion bid
for the company. Reuters also stated that a few private-equity
firms have expressed an interest in theadditional financial
details about BlackBerry's various business segments. However,
currently BlackBerry is focused on taking bids from industry
BlackBerry is facing ever-increasing competition in the
smartphone market, especially with a stagnant product portfolio
and an unfavorable product mix. The launch of
) iPhone was a big blow to the company.
The situation further worsened after Google launched the
Android operating system which was adopted byseveral smartphone
manufacturers. Currently, BlackBerry's operating system is inthe
fourth position after iOS, Android and
) Windows Phone software.
In the last three years, BlackBerry has been striving to
regain its lost glory in the market. The company has failed to
keep up with the next-generation market trend, which keeps
changing with respect to technology, price and data plan,
provided by the wireless carriers. At this juncture, the
company's decision to divest itself entirely or go private may
give BlackBerry's management an opportunity to resolve many
Given the level of uncertainty around BlackBerry's business,
it is unclear how serious Google or other tech companies are
about buying the company. However, BlackBerry has a strong
balance sheet coupled with its rich patent portfolio, which
covers a broad area of mobile security to push e-mail system for
the high-end smartphones. Its patents are estimated to be worth
$2 billion to$3 billion.
So, a potential decision to acquire BlackBerry by any
technology company could be seen as a shoring up of their patent
portfolio, though doubts about the assets' value remain an issue,
according to Reuters.
Google, Cisco and SAP currently carry a Zacks Rank #3
APPLE INC (AAPL): Free Stock Analysis Report
BLACKBERRY LTD (BBRY): Free Stock Analysis
CISCO SYSTEMS (CSCO): Free Stock Analysis
GOOGLE INC-CL A (GOOG): Free Stock Analysis
MICROSOFT CORP (MSFT): Free Stock Analysis
SAP AG ADR (SAP): Free Stock Analysis Report
To read this article on Zacks.com click here.