Samsung wants to buy BlackBerry for $7.5 billion
BlackBerry’s employees were caught using iPhones on Twitter recently, but the company could be trading in their CrackBerry keyboards for a Samsung Galaxy S6.
Samsung has recently approached BlackBerry with an offer to buy the company for $7.5 billion. The BlackBerry brand has been in decline ever since 2007 when the iPhone ushered in a new age of smartphones, but Samsung is reportedly interested in gaining access to the company’s patent portfolio.
An initial price range of $13.35 to $15.49 per share was initially proposed by Samsung, according to a report from Reuters. That price would represent a 38% to 60% premium over the current price of 12.90 per share. BlackBerry shares have climbed nearly 30% since the news hit today.
BlackBerry announced in 2013 that it planned to be purchased for $4.7 billion by a private group led by Fairfax Financial. That deal fell through but Fairfax still invested in BlackBerry, purchasing a small ownership stake. BlackBerry has since released a new BlackBerry Classic smartphone with a 3.5 inch touch screen.
Samsung is looking to buy the company for as much $7.5 billion in order to gain access to its extensive patent portfolio. Reuters reports the initial offer implies an enterprise value of $6 billion tp $7.5 billion and assumes conversion of $1.25 billion of convertible debt.
Update: BlackBerry released an official denial to the acquisition rumor:
BlackBerry Limited (NASDAQ:BBRY)(TSX:BB) (“BlackBerry”) 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.