Samsung offered to buy BlackBerry for $7.5 billion

Reuters today reported that Samsung Electronics recently offered to buy BlackBerry for as much as $7.5 billion.

Both Samsung and BlackBerry denied the takeover discussion.

Samsung could boost its enterprise offerings with the acquisition of BlackBerry. In fact, Lenovo and other tech companies were also keen to buy BlackBerry in the past.

The report said South Korea’s Samsung proposed an initial price of $13.35 to $15.49 per share, representing a premium of 38 percent to 60 percent over BlackBerry’s current trading price.

The Waterloo, Ontario-based company said in a statement that it has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry.

“Media reports of the acquisition are groundless,” a Samsung spokeswoman said.

BlackBerry
Samsung’s strength as the No. 1 smartphone marker has been built on making devices for the consumer market, which has become crowded in recent years. With a takeover of BlackBerry, Samsung could make greater inroads into the corporate market, where it has trailed rivals.

Prem Watsa, whose Fairfax Financial Holdings, is a major Blackberry shareholder. Fairfax helped bankroll a debt recapitalization. BlackBerry Chief Executive Officer John Chen joined the ailing company after investments from Watsa.

In the third quarter, revenue at BlackBerry fell to $793 million from $1.19 billion a year earlier.

Baburajan K
editor@gizmolead.com

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