Samsung and BlackBerry have issued their own statements about media reports that the Korean smartphone maker is looking to purchase the ailing BlackBerry for as much as $7.5 billion. Their statements were both a resounding "No."
Following a report from Reuters citing a person familiar with the matter who says Samsung has offered to acquire the Canadian smartphone maker; BlackBerry has swiftly denied that it has been participating in negotiations with Samsung about a possible buyout.
"BlackBerry has not engaged in discussions with Samsung with respect to any possible offer to purchase BlackBerry," says BlackBerry. "BlackBerry's policy is not to comment on rumors or speculation, and accordingly it does not intend to comment further."
Samsung's statement, sent to Reuters, is a little more straightforward.
"Media reports of the acquisition are groundless," says a Samsung spokesperson.
The report, published Wednesday, says high-ranking executives of both companies met last week to discuss a possible acquisition of BlackBerry in Samsung's bid to purchase BlackBerry's extremely valuable trove of more than 44,000 patents worth $1.43 billion that will help the Korean smartphone maker in its high-profile corporate rivalry with Apple.
The initial proposed price was said to be $13.35 to $15.49 per share, which would give BlackBerry an enterprise value of $6 billion to $7.5 billion after converting $1.25 billion of convertible debt.
Shares of BlackBerry, which recently saw a revival following CEO John Chen's restructuring strategy, soared as high as 30 percent to $12.60 at the close of the day. It's the biggest gain for the embattled phone company in the last decade. However, stocks have corrected themselves following BlackBerry's statement. The company's shares are now down by 15 percent to $10.61.
In an interview with the Globe and Mail, sources close to the Waterloo, Ontario-based company say BlackBerry has fielded off "a handful" of offers from other companies who are looking to buy the once leading smartphone maker. The sources say investors are confident in Chen's turnaround strategy and the offers made by prospective buyers, some valuing the company at more than $7 billion, fall short of BlackBerry's potential value.
"This is not a company for sale," says one person familiar with BlackBerry's plans.
Chen, whose multiyear strategy involves selling new devices that feature BlackBerry's signature keyboard targeted towards security-minded business and government clients, has been successful in turning the company around in recent months. Although BlackBerry has yet to make a profit, a goal Chen expects to achieve in 2016, the company has reached a milestone in the most recent quarter when it started generating cash again.
Also part of BlackBerry's turnaround plan is to enter partnerships with other companies to gain clients for its mobile device management system. Samsung is one of BlackBerry's most recently announced partners in a venture that combines the Korean company's Knox security system with BlackBerry's BES12 server.
