Positive Talks Help Blackberry Ltd (NASDAQ:BBRY)
Following a series of public pronouncements by management of Blackberry Ltd (NASDAQ:BBRY) on the next course of action following the steep drop in its sales volume, the stock prices of this under pressure business phone maker have risen by 2.13% during trading last week.
Blackberry Ltd (NASDAQ:BBRY) management has been sharing with trade analysts their efforts to secure viable financial arrangements with the likes of Cisco, Google Inc, or SAP AG to reinvigorate its business operations. This follows reports of a preliminary discussion with Fairfax Financial Holdings Ltd last month, for an investment of $4.7 billion to go private.
Analysts predict part-sales
While Blackberry Ltd (NASDAQ:BBRY) appears to be positive, market analysts believe that most of the companies that the smartphone major is in talks with, would be more interested in certain niches the company has to offer, rather than the whole package. Therefore, it is being predicted that Cisco will offer a bid for the unique ‘branded’ software like BlackBerry OS, rather than the hardware part of the company.
For the tech majors who are in the bidding ring to acquire Blackberry Ltd (NASDAQ:BBRY), its server network and large patent portfolio are of highest interest. BlackBerry had set high standards in corporate smartphone technologies, but has been struggling in the past few years as Apple and Samsung leap forged ahead of it with their host of mobile applications compatible smart phones. As of last month its loss was nearly $1billion. This was largely due to Z10 phones units which are sitting in warehouses unsold.
Other attractive BlackBerry assets which potential buyers would be attracted to are the nearly $3 to $4.5 billion worth secure messaging services, patents valued at $2 to $3 billion and last but not the least, Close to $3.1billion in the form of cash and investment s. Private equity firms such as Cerberus Capital Management have expressed interested in BlackBerry, though the business phone company appeared more keen to tie up with competitors such as LG, Samsung and Intel Corp.