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Bidders just want the valuable patents

A few bidders are eyeballing struggling phone company BlackBerry, but no one seems to want to buy the company as a whole.

According to a new report by Reuters, 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. 

Reuters 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 report surfaced 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 a spinoff of its messaging service BlackBerry Messenger (BBM). 

To make matters worse, the company axed more than half of its sales force last week. 

Source: Reuters

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RE: Samsung?
By acer905 on 9/16/2013 12:12:18 PM , Rating: 2
Yeah, the thing is, it's not really Google that has the market.. If you think about it, Google is somewhat just along for the ride in a Samsung run industry. If Samsung gets Tizen up to snuff, they could leave Google out to dry, and most of their customer base might not even notice. What we need is at least one other OEM to survive making Android phones to prevent a Samsung power play.

RE: Samsung?
By retrospooty on 9/16/2013 12:22:59 PM , Rating: 2
The only way that would happen is if Tizen was so up to snuff that it was better than Android. If they could pull that off, then they deserve it, but I don't see that happening. Its just hedging their bets.

RE: Samsung?
By Mitch101 on 9/16/2013 3:36:14 PM , Rating: 2
I dont think anyone takes Tizen seriously but if it ever surfaces will take a look.

I equate it to Nokia and Symbian it wasn't bad but it wasn't a real competitor to what was out there and it wasn't catching on. The momentum was behind iOS and Android so Nokia decided to be the premium device for Windows Phone. There is money in third place and running with the OS others dropped the ball on. I think Nokia would be a lot like HTC trying to compete against Samsung if they went with Android and recently just before Microsoft bought Nokia they had Android ready on premium Nokia devices as Plan B.

In your earlier post I have to disagree while Windows Phone is not growing by leaps and bounds in the US its holding its own and Internationally Windows Phone exceed double digits in about 15 countries and is growing rapidly. In Russia Nokia is Number 1 ahead of Samsung.

Striking back: Nokia regains lead in Russia, passes Samsung on the way (Unable to post link)

The last frontier will be when Nokia/Windows Phones start getting into the Pay as you go Programs with cheap devices something currently dominated by old android 2.x devices.

RE: Samsung?
By melgross on 9/16/2013 3:26:21 PM , Rating: 2
That's really the question. Are people buying Samsung phones because they're Samsung, or because they're Android? Do most people care if it's Android or not? They may not care. If Samsung gets enough apps, that could draw people away from Android.

RE: Samsung?
By Mitch101 on 9/16/2013 3:45:13 PM , Rating: 2
Its probably easier than most people think.

Technically all they need is the top 50 apps and that would apply to most people out there. Really too much focus is given to the number of apps instead of the top apps people want/use in a smartphone.

I rarely go to the App store any more unless its a game because there isn't anything I can think of doing with my smartphone that the 30 or so apps I have don't do already.

Its like my PC I have maybe 20 Apps. Of them I use maybe 5 daily. About the only other thing I look for is a new game generally when steam sales come around.

RE: Samsung?
By Reclaimer77 on 9/16/2013 5:17:26 PM , Rating: 2
The question is how many mobile platforms can the market support? Blackberry went from market leader to being trampled in just a few short years. Microsoft is making some gains in foreign markets, thanks to a super cheap handset they make virtually no profit on, but that's been slow going.

Is it really as easy as making a phone, an OS, and just having some top apps?

"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins

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