BlackBerry Could be Sold Off in Fragments as Bidders Remain Skeptical of the Whole
September 16, 2013 9:50 AM
comment(s) - last by
Bidders just want the valuable patents
A few bidders are eyeballing struggling phone company
, but no one seems to want to buy the company as a whole.
According to a new report by
, bidders interested in a BlackBerry sale are more interested in buying parts of the Canadian company rather than the whole thing. Among the potential bidders include private equity firms, who see BlackBerry's current position in the mobile market as too much of a challenge to buy the entire company -- which is valued at around $5.4 billion USD.
The private equity firms and other bidders are particularly interested in BlackBerry's operating system and the patents for its keyboard. Taking BlackBerry's more valuable parts makes more sense than taking on its troublesome whole.
broke down BlackBerry's market value by $3 billion to $4.5 billion for its security-based messaging system; $2 billion to $3 billion for a collection of patents, and $3.1 billion in cash and investments. Meanwhile, the company's hardware has little to no value, and could even cost $2 billion to shut down. In total, this is clearly more than its $5.4 billion market value.
Other options for the sale include a Canadian pension fund joining an investor to buy the whole company.
Fairfax Financial Holdings Ltd, BlackBerry's biggest shareholder, has sought many large Canadian investment funds in hopes of taking the company private as well.
A lot of BlackBerry's troubles stem from the struggle to stay relevant in a mobile market dominated by Apple's iPhone and Samsung's Galaxy line. It launched its BlackBerry 10 (BB10) operating system and line of devices back in January as an attempt to stay competitive, but so far, it's been a flop.
Reports have said that the BB10 flagship devices --
the Z10 and the Q10
-- have failed to stir any enthusiasm in the U.S. and Canada.
Earlier this month, the company's board of directors announced the formation of a Special Committee to
explore strategic alternatives
to enhance the value and accelerate the development of BB10. The announcement came only a few days after a
that BlackBerry might go private in an attempt to fix its problems away from the public. The company was also open to a sale.
Last month, reports said that BlackBerry executives were considering
of its messaging service BlackBerry Messenger (BBM).
To make matters worse, the company
axed more than half
of its sales force last week.
This article is over a month old, voting and posting comments is disabled
9/16/2013 10:09:55 AM
I think we will see the same happen here where the mobile development companies combine together to purchase the patent portfolio. Not sure anyone is interested in the rest of them except maybe IronPort or Good but I'm not sure either of them care.
Also maybe Google will learn this time and wont claim they weren't invited to the purchase party then cry foul of the patent system and try and use the tech without anyone's approval. Then its fan base cry when Google has to pay royalties because of it.
"If they're going to pirate somebody, we want it to be us rather than somebody else." -- Microsoft Business Group President Jeff Raikes
Report: BlackBerry Sheds More Than Half of Its Sales Force
September 10, 2013, 11:01 AM
Report: BlackBerry Q10 Sales Looking Dismal
August 29, 2013, 4:31 PM
Report: BlackBerry May Jettison Successful Messaging Service
August 27, 2013, 6:33 PM
BlackBerry to Explore "Strategic Alternatives" to Complete Restructuring Efforts
August 12, 2013, 8:58 AM
Report: BlackBerry Could Go Private
August 9, 2013, 9:16 AM
New Qi Version 1.2 Allows Wireless Charging From 2 Inches Away
July 31, 2014, 3:53 PM
HTC J Butterfly Announced by Japan's KDDI, Packs LTE-A Carrier Aggregation
July 31, 2014, 2:34 PM
T-Mobile Subscriber Numbers Surpass 50 Million, Sees Q2 Profit of $391M
July 31, 2014, 12:24 PM
Verizon Wireless Launches 5.7", 960x540 LG G Vista Smartphone for $400 Off Contract
July 31, 2014, 11:02 AM
Mini-Me: Xperia Z3's Petite Companion, Xperia Z3 Mini Leaks
July 31, 2014, 9:40 AM
Samsung Reports Lower Smartphone Sales, Operating Profit Falls 25% YoY
July 31, 2014, 8:55 AM
Most Popular Articles
Facebook Will Force Android, iOS Users to Use Messenger App This Week
July 29, 2014, 11:26 AM
Sony's Xperia Z3 Gets Detailed in Leaked Photos
July 25, 2014, 2:30 PM
Ford's Extensive Use of Aluminum in '15 F-150 Results in $395 Increase for Base Models
July 28, 2014, 3:02 PM
Pentagon's Priciest Project, F-35, Misses International Debut
July 25, 2014, 10:18 AM
T-Mobile CEO John Legere is on the Warpath Again; Introduces $100, 10GB Family Plan
July 28, 2014, 10:12 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information