Although a full buyout of the entire company as a whole was denied by both BlackBerry and Samsung. Instead, news surfaces that Samsung is looking to purchase a stake at BlackBerry which could see Samsung completely takeover or simply just buy in.
Following last week’s rumor which sent BBRY up by over 40%, John Chen was quick to refute the claim. Samsung executive J.K Shin also backed John Chen saying they had no interest in acquiring BlackBerry, but looking to use BlackBerry’s software, which both companies already have a relationship based on (BES12)
Instead, word has it that Samsung is looking for a stake at BlackBerry in which they could completely takeover or simply just buy. The Financial Post has obtained a document prepared for Samsung at a New York based independent investment bank Evercore Partners which details the information concerning both parties. This document was prepared last year, but source close to the Financial Post said Samsung is interested in purchasing the whole or parts of BlackBerry.
According to the Financial Post, the Reuters leak caught Samsung off-guard. Samsung wanted to “send a message to Apple and Microsoft”. The Evercore document detailed how BlackBerry’s BES12 suite appeared complimentary to Samsung, listing the advantages. Last but not least, the document also listed a scenario which could see Samsung purchasing a minor stake at BlackBerry which could help secure regulatory approval.
The news doesn’t come as a surprise as BlackBerry’s press release following last week’s rumor was carefully worded. John Chen has a plan he’s following through with (and meeting targets) and Samsung is also looking to dip their toe in the enterprise game whilst looking to further extend their business with IoT. Nonetheless, the stock is up 7% following the news coming out of the Financial Post. One thing’s for certain, something is happening behind closed doors, as more news creeps out from “sources that wished to remain anonymous” only time will tell.
Source: Financial Post