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Samsung buying BlackBerry might be a good idea

Stephen Lawson | Jan. 16, 2015
Samsung reportedly offered as much as US$7.5 billion for the company. Both companies denied it, though.

Samsung Electronics and BlackBerry have both denied a report that they met to to discuss a proposed US$7.5 billion buyout by the South Korean powerhouse.

The Reuters news service reported on Wednesday that Samsung had offered to buy BlackBerry for between $13.35 and $15.49 per share. Its story cited documents and an unnamed source. The report sent BlackBerry's stock up dramatically late in the trading day. Its shares on the Nasdaq (BBRY) ended at $12.60, up by nearly 30 percent.

"Media reports of the acquisition are groundless," wrote a Samsung spokeswoman on Thursday.

"BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry," the company in Waterloo, Ontario, said in a statement late Wednesday.

Though BlackBerry is far from the mobile player it once was, it still has respected security technology, patents, automotive and industrial software from its QNX division, and a loyal following among users in enterprises and some developing markets.

Samsung makes more smartphones than any other company in the world but recently has seen its sales and profits decline.

Editor's note: This article was originally published on 1/14/15, but updated on 1/15/15 to include Samsung's denial.

 

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