BlackBerry Issues Statement Denying Rumours Of Acquisition Talks With Samsung

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Following a report, in which Reuters tagged ‘exclusive,’ BlackBerry has issued a statement denying it was in talks with Samsung to sell the company. The price quoted was $7.5 billion, but it seems the story which spread like wildfire on Wednesday may not be true if BlackBerry’s statement was anything to be taken seriously.

The BlackBerry statement issued on Wednesday said:

“BlackBerry Limited is aware of certain press reports published today with respect to a possible offer by Samsung to purchase BlackBerry. BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry. BlackBerry’s policy is not to comment on rumors or speculation, and accordingly it does not intend to comment further,” the statement reads.

Blackberry-Logo

BlackBerry’s stock had risen by 29 percent shortly after the rumour started spreading; but it seems we may have to wait and see how far this one goes. However, the company in its statement had stated that it is not part of its policy to comment on rumours.

According to the report, both parties met last week to discuss the possibility of a potential takeover, with no sale made yet.

This would not be the first time the company had shunned a takeover bid as reports of previous bids were reported in the media. Globe, a Canadian newspaper had reported that the company shunned a couple of takeover overtures in a couple of months ago. The newspaper further reports that the company’ board and largest investors are of the view that its current efforts at restructuring the company will benefit the shareholders than offers of acquisition being touted in the media.

According to the Globe and Mail report, BlackBerry board believes the offering prices, which it said were sometimes in excess of $7 billion, fell below the company’s potential asset value in the next couple of years.

BlackBerry has been undergoing a lot of restructuring, which the company hopes will help restore it its share of the market, which it lost to Apple and Google. The company recently launched its BlackBerry Classic, which it hopes would bring back the good old days.

Last November, BlackBerry announced a security partnership with Samsung, which would see the security platform of the former merge with the South Korean company’s own security software for its Galaxy devices.

Perhaps, this could be Samsung’s way of trying to boost sales of its smartphones, which seem to be struggling at the moment.


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Author: Firdaus

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