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Print 23 comment(s) - last by zephyrprime.. on Mar 13 at 10:13 AM


  (Source: cfo-dailyreport.com)
BlackBerry isn't saying a word about it, but it's shares are rising

Lenovo's slip about possibly buying BlackBerry sent the BB10 maker's shares up 14 percent in New York.

Lenovo CEO Yang Yuanqing told French financial newspaper "Les Echos" that it could eventually buy BlackBerry, but it needs to review such a decision first.

"[The deal] could possibly make sense, but first I need to analyze the market and understand what exactly the importance of this company is," said Yuanqing.

This statement falls in line with what Lenovo CFO Wong Wai Ming said in January, which was that the company was looking at many opportunities -- including BlackBerry.

However, BlackBerry CEO Thorsten Heins hasn't addressed a possible takeover yet.

“As always with these topics, we will talk about things when they are ready to be talked about and ready to be announced,” Heins said in January. “There are other constituents in the process that need to be involved -- if there would be anything.”

BlackBerry shares increased 14 percent to $14.90 at closing in New York after news of Lenovo's interest got out.

BlackBerry, formerly Research in Motion (RIM), has been trying to make a comeback after losing market share to the likes of Apple's iPhone and Android-powered mobile devices. Even government agencies, which traditionally used BlackBerry phones, have started using iOS and Android products.

BlackBerry introduced its latest line of software and devices -- BlackBerry 10 (or BB 10) -- in January of this year. At that time, it revealed the BlackBerry Z10 and the Q10 phones.

The Z10 finally came to the U.S. today as AT&T begins its presale for $199 (with a two-year contract). The phone actually ships March 22.

It remains to be seen whether BB10 will save BlackBerry, but Heins seems optimistic. He was recently quoted saying that Z10 sales in Europe were "encouraging."

Source: Bloomberg



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Lame
By Oyster on 3/12/2013 9:49:40 AM , Rating: 0
It'll be the lamest acquisition in Lenovo's books. BBRY is a dead brand, and it'll reflect in Lenovo's "goodwill" if Lenovo actually acquires BBRY.

Don't waste your money, Lenovo. Focus on PC hardware - don't make the same mistake HPQ made with WebOS.




RE: Lame
By DanNeely on 3/12/2013 10:05:46 AM , Rating: 4
BB still has a solid patent portfolio. While Lenovo's largely managed to avoid the current rounds of lawfare if they do decide to enter the phone business and expand their tablet presence having a portfolio of their own would be beneficial.


RE: Lame
By Oyster on 3/12/2013 11:17:20 AM , Rating: 3
I do agree with you to a certain extent, but stats speak for themselves. If you look at actual historical data from Bloomberg or FactSet, it's obvious that 70-80% of such patent-related acquisitions destroy value. I neither own Lenovo nor am short BBRY.

It's just another way for some clueless Silicon Valley investment banker to "close the deal" to earn some transaction fees.

@T2k - might come as a surprise, but I'm in the heart of Silicon Valley. Decent attempt at generalizing your views though. To paraphrase Warren Buffet, when it comes to investing, think with your brain, not your heart. Your love for BBRY is obvious... too bad they haven't executed squat. Lenovo would be much better off diversifying itself with a portfolio of handsets based on Android and WP rather than wasting money on an acquisition.

There's one scenario in which such an acquisition may make sense: if both MS and Google (via Motorola) start shipping their own phone hardware. However, as I referenced above, most such acquisitions fail... it could be lack of enthusiasm or resented workers, post-acquisition, but Lenovo may be better off synthesizing other strategies.


RE: Lame
By chrnochime on 3/12/2013 11:27:56 AM , Rating: 2
Google doesn't ship their own hardware via Motorola? Am I missing something here or does Motorola making their own phones not count??

And anyone can "invest". What set the good/great ones apart from the also-rans is the amount of money they manage to make. Since you obviously have no need in proving how successful you are at doing the above, everything you said is about as valid as the next anonymous person posting here.


RE: Lame
By Oyster on 3/12/2013 11:42:11 AM , Rating: 2
Caveat Emptor -- every post on any forum is opinionated, regardless of the poster.

Google owns Motorola, so technically, it's already shipping its own hardware. What it doesn't do is ship Motorola-manufactured phones under the Nexus brand... but I won't be surprised if that changes within the next year or so.

My only point is that it's hard to justify such acquisitions when their failure rate is an astounding 70-80%. Ironically, Lenovo itself is an example -- just look at their Facebook pages for customer service issues on current hardware. Such things never used to happen under IBM :).


RE: Lame
By retrospooty on 3/12/2013 3:14:29 PM , Rating: 2
"Lenovo itself is an example -- just look at their Facebook pages for customer service issues on current hardware. Such things never used to happen under IBM :)."

Like hell IBM didnt have customer service issues. They had it and plenty. Any and all PC makers have it because people are idiots. As far as quality, it actually got better under Lenovo than it was under IBM (Which was always good). I know, I spent a good part of my career repairing thinkpads for the largest laptop repair company in the world at the time. It was a small company later bought by Solectron, which was then bought by Flextronics. Lenovo shocked everyone when quality didn't go to hell like it was expected. It actually got better. To the best of my knowledge Lenovo is the only company to buy another top name line like that and actually make it better. Usually companies buy other well known brand names like that and cheapen the quality to make a quick buck from the brand name.


RE: Lame
By therealgras on 3/12/2013 4:34:09 PM , Rating: 2
Lenovo made the laptops and PCs for IBM, if you remember the T60 line like I had had both the Lenovo and IBM name on them, once they came out with the T61 generation the IBM name was finally dropped. Lenovo basically just bought the Thinkpad and Thinkcentre names and the associated tech.


RE: Lame
By retrospooty on 3/12/2013 9:38:45 PM , Rating: 2
Yes, and they made it better once they owned the name 100% from design to shipment. The T500 got better as did the T510.


RE: Lame
By theapparition on 3/12/2013 10:12:45 AM , Rating: 2
I don't know about that.

Right now I'm considering buying stock in White Star Lines. I hear their new ship, the Titanic, is unsinkable.

All jokes aside, I do think Blackberry has some good core tech, but they need to capitalize that rather than try to compete with Apple/Android/Windows now. Their new BB10 phones aren't going to save them.

As for HP and WebOS, that's more a tale of drastic mismanagement, lack of vision and complete misunderstanding of WebOS by HP management. They paid to get the keys to the crystal castle, kept it locked up, fired the staff and watched it crumble into ruin. I'm glad to see WebOS starting to have some life again, but it's over. Google hired many of the WebOS designers and you're seeing a lot of that integrated into Android now.


RE: Lame
By retrospooty on 3/12/2013 10:36:44 AM , Rating: 2
"As for HP and WebOS, that's more a tale of drastic mismanagement, lack of vision and complete misunderstanding of WebOS by HP management."

Exactly... WebOS had TONS of potential and it was a greqat buy for HP. Palms issue was a great OS with no money, or talent to match it on the hardware side. HP buying WebOS and then not putting effort into it then closing it a year later is like if the Chicago Bulls drafted Micheal Jordan, then sat him on the bench for a year or two then traded him off. A total pointless waste of talent and potential.


RE: Lame
By zephyrprime on 3/13/2013 10:13:08 AM , Rating: 2
Blackberry's core tech is useless. Anybody can put outlook compatible secured email on any smartphone nowadays. Why ever bother buying their server? There's no compelling business reason to do so. BB10 is their only hope now.


RE: Lame
By T2k on 3/12/2013 10:16:18 AM , Rating: 2
Classic idiotic, clueless post, most likely from someone stuck out there in the sticks, somewhere in small town US, knowing nothing about the world...

...with BB actually *growing* in Asia they have a huge potential avoiding to be entirely dependent on the stupid, intransigent, anti-competitive, provider-dictated US telecom market and bringing in much needed revenues from other, growing ones - provided they can execute, of course.

Comparing Lenovo to HP is an even more idiotic idea, I must add - HP had several executive officers in 3 years, thanks to its utterly clueless, retarded board who was always only interested in pushing their own lapdog candidates, this is why they believed that complete BS Apotheker was selling them (he was a totally incompetent software sales guy, flat-out fired from his job at SAP after almost driving it into the ground)... rest is history, this clueless idiot took over HP, wrote down the entire Palm investment then managed to halve HP's value in days by opening his stupid mouth about future shutdown of the PC business... none of this has any similarity with a well-run Lenovo which is on its way to become the #1 computer vendor this year.


RE: Lame
By retrospooty on 3/12/2013 10:40:00 AM , Rating: 3
Yup, HP buying Palm, doing nothing with it and closing it a year later is not the same as Lenovo. Lenovo bought the most popular business PC/Laptop line in the world and when everyone assumed they would cheapen the thinkpad line and make a quick profit, they put money and effort into it and actually made it better than IBM ever was... Levovo quality is the absolute best in the business.


RE: Lame
By rocketbuddha on 3/12/2013 10:52:12 AM , Rating: 2
Buying Palm was the idea of Mark Hurd.
If he was not stupid enough to pay for the Escort services of a former B Grade model with expenses from official HP account, WebOS would have had some life in the company rather than being decimated.


RE: Lame
By retrospooty on 3/12/2013 10:57:37 AM , Rating: 2
Ya, I realize things would have gone differently depending on Hurd, but what happened happened. It's an overall comment on how mismanaged HP is and has been for at least a decade. The board is at fault for hiring loser after loser to run the company into the ground.


RE: Lame
By Flunk on 3/12/2013 10:23:34 AM , Rating: 2
The biggest mistake HP made was not running with webOS. Tablets are selling like hotcakes and they essentially dug their own grave by giving up much too soon.

I can see a synergy between Lenovo Thinkpads and Black berry phones. They appeal to the same market so this could make a lot of sense.


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