Despite Denials, Samsung Pushing Ahead With BlackBerry Acquisition

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Despite repeated denials, reports suggest that Samsung is still going ahead with moves to acquire BlackBerry. This was revealed by the Financial Post, who quoted an anonymous source.

Rumors of a potential acquisition were rife in the media about a week ago after Reuters reported that both companies were in negotiations; but Samsung and BlackBerry both came out to deny such. Quoting the source, Financial Post said talks are on-going. “They’re leaning towards it.”

It is obvious from the report that Samsung is still pursuing the deal, and there could be some light at the end of the day if an agreement is reached between both companies. With a proven track record of reporting stories that have to do with BlackBerry, this is one report that cannot be ignored. The Financial Post cited a document prepared for Samsung by Evercore Partners, a New York investment bank in 2014, which reportedly outlines the case for an acquisition as well as suggesting the possible structure for such a purchase as its bases.

Samsung

Though, the document was prepared last year, the paper reports that the Korean company is still very much interested in acquiring all or part of BlackBerry as long as the price is right.

Going by the source, who by the way would want to remain anonymous, a deal could still take place, and we could yet see Samsung acquire BlackBerry anytime soon or later.

“I can tell you Samsung is contemplating a purchase,” said the source, who asked to remain anonymous because of the sensitive nature of the talks. “It’s still being pursued right now. Samsung is still evaluating their options. So it’s still very much an open deal.”

Perhaps, the revelation of a possible deal caught both companies unaware, with the Financial Post reporting that BlackBerry was hoping to make a quick move with a price they believed was attractive enough to avoid a prolonged negotiating process.

According to the financial advice prepared for Samsung by Evercore, an offer of $13.35 to $15.49 per share, for a valuation of between $7 billion and $8 billion was suggested.

BlackBerry has been doing a lot of work to get win back the market after losing out to other smartphone companies including Samsung. While denying any such deal was on-going, the company in a statement 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.


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Author: Ola Ric

Ola Ric is a professional tech writer. He has written and provided tons of published articles for professionals and private individuals. He is also a social commentator and analyst, with relevant experience in the use of social media services.

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