BlackBerry, the Canadian telecommunications company which for the past years has been in a difficult financial situation, could get bids from Google, SAP and Cisco, according to Reuters sources. The company could be taken over by technology giants in whole or in pieces.
The sale is an alternative to the proposal made by the largest investor in the company, Fairfax Financial Holdings, seeking the de-listing of BlackBerry from the stock exchange. Another option proposed by the Chief Executive Officer Thorsten Heins would be focusing on messaging services considered to be very safe. BlackBerry is preparing to launch the final version of the BlackBerry Messenger application for Android and iOS.
Google, SAP and Cisco are interested, in addition to messaging services, in the highly valuable patent portfolio held by the Canadian company estimated at $2-3 billion. According to analysts, the BlackBerry services division is worth between $3 and $4.5 billion.
BlackBerry stock rose 4% yesterday and the interest from potential buyers made Kevin Smithen from Macquarie to upgrade the rating for the company from “underperform” to “neutral.” The analyst said that BlackBerry “has finally attracted enough interest from the global tech titans who may take a ‘punt’ on enterprise mobility.” He advised his clients to hold on to their shares for now. “We believe a US$6 to US$9 sale price range by year end to perhaps a consortium of buyers is the most likely outcome,” he added.
The company must quickly find a solution because of the massive losses in recent quarters. Its cash reserves is currently around $2 billion. An analyst at Bernstein company claims that this money will be spent in a year and a half if BlackBerry would not turn to profit.
BlackBerry ‘s financial advisors are JPMorgan Chase & Co. and the investment company RBC Capital Markets.
SAP is one of the largest producers of business software and Cisco is a leader in the networking industry.
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